The thing about estate planning is that no one gravitates toward it during normal times. Only during times of great excess or detrimental loss are our thoughts pulled toward thinking about establishing protective measures for our assets and savings. Estate planning is not necessarily a morbid undertaking. It’s more a responsible process that indicates you are aware that you will need successors and that your money needs substantial protection to ensure that after your passing it will remain in your family’s hands instead of large portions frittered away in taxes to the federal and regional government. Putting your financial affairs in order can at times be a difficult endeavor and we recommend consulting with an estate planning professional before finalizing any wills, trusts, and advance directives.
There are several estate planning essentials that every person with a substantial estate should know and at some point or other, preferably earlier than later, get about undertaking.
Draft a Will:
Drafting a will establishes where and to whom your money and assets will go to after you pass away. Without a notarized will, your estate may end up divided amongst individuals, relatives, and the government.
Establish a Trust or Trusts:
Establishing a trust can help you diminish estate taxes and retain assets that would otherwise be collected by the IRS. There are several different types of trusts, including Revocable Living Trusts, QTIP Trusts, Charitable Remainder Trusts, and Irrevocable Life Insurance Trusts.
Assign Power of Attorney:
Assigning power of attorney is an important part of estate planning. Durable power of attorney lets your estate planning attorney sign your name on important documents and is effective even if you are not incapacitated. Springing power of attorney only allows your assigned attorney to sign on your behalf under circumstances you stipulate or when incapacitated.
Designate Beneficiaries:
Choosing an heir and beneficiaries is a time-tested method of handing down your assets, property, and ensuring your estate endures. Without heirs and beneficiaries, a court will decide how your estate will be divided as it sees fit.
Establish Advance Directive:
An advance directive explains to your attorney and loved ones about your preferences for end-of-life treatment. The importance of having an advance directive cannot be understated. There may com ea time when you will be unable to express your preferences for care when you are incapacitated.
If you are in need of help with your estate planning and/or other financial issues regarding our estate, please contact an avocat succession in your area today.
