Planning your estate is often ignored and neglected, but it’s a task that everyone should complete to protect their family and their assets. As of 2010, 65 percent of American adults didn’t have a will, according to a Harris Poll.
Advanced estate planning will help save your family members time and money. To get started, here are some things to keep in mind when working to plan your estate.
Will v. Trust
A will is a document that tells the legal authorities what should happen to your possessions after you pass away. It can be any length, and in most states should be witnessed by others. A will also designates legal guardians for any minor age children.
A trust is used when property intended to benefit one party, known as the beneficiary, is held by another party, known as the trustee. Trusts allow assets and possessions to skip the probate court process and go directly to those intended recipients, which could save time and money.
Getting Started
When considering your estate plan, important questions to answer include: Are you married? Do you have children? If so, how old are your children? Are there specific items of property or amounts of money you want to pass on to specific people, charities or other entities?
The second component to consider is the level and total amount of your assets. This number is important so you can minimize any state and federal taxes owed.
Account Management
Some assets such as retirement accounts and life insurance proceeds don't always pass through a will if they have designated beneficiaries. So, remember to designate on each account who you want to inherit those assets and review your beneficiary designations regularly. Also, jointly-owned real estate, cars and bank accounts can pass directly to the surviving co-owner(s) and skip the probate court process.
It’s important to review your estate plan following big life events, such as the birth or death of a family member, marriage, divorce or moving to another state. Keep in mind that probate law is specific by state and differs throughout the country. At a minimum, it’s recommended that you review your estate plan every 10 years.
Be Detailed and Specific
If you don’t plan to leave anything to one or more immediate family members, include their names on the document so the executor won’t think they were overlooked.
Make sure to mention and designate ownership for items that have sentimental value to family members, which will help avoid fights and other issues. Also, if you own a business, make sure to include who will take over its ownership.
Another important thing to do is to clarify the location of all your estate and insurance documents. It’s smart to keep your will in a secure place, preferably in a bank safe deposit box, and tell your loved ones where they can locate it.
Remember, it’s going to be much easier for you to inventory your assets now, than for family members to try and find assets and important paperwork following your death.
Choosing the Right Lawyer
Another critical factor in effective estate planning is finding the right legal representation. Look for a lawyer who is a good personality fit, specializes or has real experience in estate planning and can best handle the process.
Attorneys from Wilson Law Firm have experience advising individuals and families on many legal matters including estate planning, wills, trusts and probate in both Kentucky and Tennessee.
To get in touch with us, give us a call! In Kentucky, call (270) 388-9951, or for our Tennessee office call (931) 647-9976. You can also like our Facebook page, or shoot us an e-mail! We would be happy to assist you.
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