Many of us have been paying for life insurance for years, thinking that our loved ones will be taken care of. Would you be surprised to learn that half of the death benefits might go right to the government, rather than to your family? This illustrates why proper estate planning is critical. A knowledgeable, experienced estate attorney is your number one advisor to ensure your family’s financial future is protected.
At the very beginning of planning your estate, you should make sure you have a valid and current will. The purpose of a will is to allow your assets and possessions to be distributed to those individuals specified in the will, when you pass away. When you create your will, it is crucial that you consult with an attorney. Improperly drafted wills will not be valid and will not be followed, with the possibility that your heirs do not receive the assets as you intended.
The living will is another aspect of estate planning that is becoming more commonplace today. This is a very important document that states your wishes in case of a medical catastrophe, such as if you are on life support machines. It is crucial that you understand exactly what a living will is when planning your estate. A proper living will ensures that your medical intentions are followed, takes such decisions out of the hands of your loved ones at a time of stress and grief and provides direction to your family, doctors and caregivers.
Another important aspect to estate planning is a family trust. This is set up to avoid probate, which opens your estate to public view, is expensive and takes months or years. Instead, a proper family trust will quickly, privately and effectively distribute your assets and possessions to your heirs. In addition, a proper trust will maximize your credit against estate taxes, preserving more for your family, rather than paying more in estate taxes. You can set up a trust to distribute in one lump sum, over a period of time, or when an heir reaches a certain age.
There is no better time than the present to begin your estate planning, and it is in your best interest to hire a competent estate planning attorney. Not only is your attorney an objective party, he or she is also aware of tax laws and can save your loved ones estate taxes, along with the stress of handling your estate themselves. Moreover, a good attorney will make sure that your assets are distributed according to how you want, rather than according to a court, and rather than the government imposing exorbitant taxes on your estate.
It is necessary to plan for your family’s future long after you are gone. If you do not set up proper estate documents, your family could be tied up in probate court for years. Perhaps worse, much of your estate could be lost in taxes rather than transferred to your family. By taking advantage of estate planning, you are taking steps to make the grieving process a little easier for your loved ones, and making sure that your estate goes to your family according to your terms, and not according to a probate court, or to the government in excessive taxes.
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