Estate planning is a vital part of any individual’s life. Most people find it stressful and confusing in dealing with their estates. However, if you have an estate plan in place, you can feel confident that everything will run smoothly. This will leave you more time to enjoy your family and yourself. Here’s an overview of the basics of estate planning:
You can’t take money out of your estate without the express permission of the plan holder. As long as your estate is protected, you can move funds to your beneficiaries or invest them elsewhere without any legal hassles. With these tools, you can plan for your future without being hindered by estate taxes or other burdensome fees.
When you plan for your future, you should hire an estate planning lawyer who can help you through the process. A good attorney can make the entire process easy, stress-free, and less expensive. He or she can explain all of the details of the plan and its implications, as well as offer valuable advice on how to protect your assets. The attorney can also work with you to protect those assets that are currently in your name.
The estate plan protects all of your assets, including any intestate interests and those of your dependents. In addition, it also helps you reduce the tax load on your current assets by transferring the tax-deferred portion of your assets to a tax-free entity. In other words, it lowers your taxable income and thus lowers the amount of taxes you have to pay.
An estate-planning lawyer can also help you prepare for your state of residence when you die. This includes the lodging of your funeral and memorial, as well as the distribution of your remaining assets. A good plan will require that you transfer all of your properties to trust, most likely designated as the “goblet of wealth.” This is done through a durable power of attorney that is signed by both you and your attorney. Your estate plan can be changed if it is found to be inconsistent with the law, but you might have to give up some of the asset protection the plan provides.
Your estate could be subject to state and federal taxation after you die. Your estate might be seized by the IRS, which holds the power to apply the tax on your estate, including any inheritance or interest. If the IRS discovers some property you own that is not exempt from tax, then your attorney can negotiate with the IRS for a disposition of that asset. In most cases, your lawyer will be able to successfully negotiate with the IRS for the proper distribution of inheritance or gift tax liabilities.
An estate plan does more than transfer money to family accounts. It can also name beneficiaries. As an owner of a business, you may name one employee, a corporation, or several employees. As an owner of a trust, you may name several trusts, each naming an individual beneficiary. An estate-planning lawyer can help you determine which trust beneficiaries should receive the transfer proceeds, and who should retain them. Your lawyer can also help you make sure the transaction complies with your estate plan.
There are many circumstances under which a will cannot properly be executed. These include but are not limited to, insanity, mental incapacity, death, and a number of other situations. When you lose your mental capacity, you are no longer in control of your affairs. Likewise, if you die, you will name a person as the executor and he or she must sign the document on your behalf. If you cannot remember whom you want to be named as the executor, then you may wish to enlist the help of an estate plan attorney.