Estate planning used to be imagined as a luxury-expense only the rich can afford. That thought process has changed now, evident by the number of middle-class families who have started estate planning. Estate planning includes the designation of heirs to a decedent’s assets, whether it is a house or a stock portfolio. If left up to the court, the distribution of assets would not reflect the true intentions and motives of the deceased. Hence, families exposed to future financial planning prepare and secure themselves in the event an earning member or the family dies.
Reasons for Having an Estate Plan
Estate Plans give individuals assurity; their assets will not be squandered and distributed in a haphazard manner. Read the following section for why estate planning is essential to invest in:
- It’s reflective of how you would want to distribute your property.
- Minors can inherit your wealth. You get assurance that they will be financially secure.
- Estate plans: protect your loved ones from the Internal Revenue Service (IRS).
- Fashioning an Estate Plan involves transfer of assets in a manner which reduces federal taxes, state inheritance tax, etc. on your loved ones.
If an estate plan is not detailed then there can be potential disputes in the event of an individual’s death. Remember to always invest in a detail-oriented plan. A family is prone to bouts of aggression if your estate is divided in a manner which does not do justice to the role they have played in your life. Without an estate plan, the distribution of your assets will be in the way of Intestacy laws.
The Value of a Valid Will
The value of a valid will is described best using Intestacy laws. Dying without a will means that the legal courts gain temporary possession of the decedent’s property. It is then the courts get the task of distributing the property equally amongst heirs. The only problem that arises when an individual dies intestate is that the court will not know how to distribute the property in a manner which the decedent would transfer it.
Dying intestate means that your intestate inheritors may not be able to receive any of your assets, or your estate, or a long time. Furthermore, to avoid the messiness of the Probate process, hiring an attorney as a Bailee under the will is imperative to do. It also ensures that the will gets recognition as a legal document of relevance.
An attorney with a strong foundation in UPC (Uniform Probate Code) clauses can help you draft a concrete will which is error-less and is straightforward and easy to comprehend. At the end of the day, your Will acts as a shield for your spouse and your children. Not investing in a good plan will be consequential for your family. They will have to fight to determine which family member entitled to which asset.
Estate Planning Essentials
Find below a list of legal documentation and items every estate plan needs to have in order to ensure the Probate process moves along smoothly:
- The Written Will or a Trust.
- The durable power of attorney.
- Beneficiary designations.
- Letter of Intent.
- Healthcare power of attorney.
- Guardianship Designations.
Taking into consideration the above mentioned tips, one can see how necessary it is to have a legal representative. He/she will carry out your Will in the event of your death. Investing in an estate plan, therefore, is an expensive decision. Yet it is necessary in order to guarantee your family members immunity from the trouble which will ensue after your death. This documentation is also essential to specifically stipulate clauses for certain contingencies. This includes the adult beneficiaries use of the inherited property.
Additionally, a power of attorney is a form of validity which verifies that a family is indeed being represented by a lawyer. In this instance, a family’s hired attorney does not exist in the eyes of any legal court. A beneficiary designations and guardianship designations are similar to the power of attorney. They are the legal proof that these designations exist.
Families have always had the impression that creation and formulation of a will is an arduous process. They think it will drain more resources than it will help their family recover. However, this attitude has recently shifted. Today, more and more people are willing to accept that making a valid Will, which is, in fact, a form of investing for your family and children. Guarantee your children inheritance property and start strategizing estate plans today.