Should You Create An Estate Plan? (Hire An Estate Planning Attorney)
Do You Need An Estate Plan?
Estate doesn’t necessarily mean mansions and sprawling grounds, but we can have estates even if we aren’t wealthy. In simple terms, an estate includes all a person’s assets, including real estate, cars, cash, and other items. Anyone who intends to leave assets to one or more surviving family members after their death must create a formal estate plan. If you’re unable to speak for yourself, you need an estate planning attorney. With them, you can make it easier for your family to carry out your wishes and needs.
In the event of death, a person has real or personal property. A primary objective of estate planning law is to facilitate the transfer and management of the property after death by the creation of living wills, trusts, powers of attorney, and other documents.
Estate planning near me is a topic that should be discussed with your family to make sure everyone is on the same page about what happens if something happens to you. Your estate, which includes all of your assets and debts, will need to be managed.
There are many benefits to creating an estate plan even though it sounds intimidating at first. Having one can save time for those who are left behind to manage your estate. Browse our reviews to determine whether we are the right choice.
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How Do Estate Plans Work?
An estate plan consists of a collection of financial and legal documents that protect your assets and personal property (your “estate”) and describe how you wish to pass them on. Specifically, the document specifies who will carry out your wishes in the event of your absence.
What Is Included in an Estate Plan?
By having a will, you can name who you want to:
- Take possession of each asset you own
- Become the guardian of your children
- Become an executor who oversees the estate plan process
An agent with power of attorney who:
- Whenever you are unable to make your own financial decisions
- Makes legal or business decisions pay your bills and manage your investments
Power of attorney for medical care, who:
- Ensures that your medical decisions are made if you are incapable
A living will consist of:
- A prepared document that records your end-of-life preferences
An entity that:
- Distributes your assets when and how you want
- Taxes on estates are reduced or eliminated
What Are Three Critical Features of an Estate Plan?
1. Protects family assets (or other heirs)
Creating an estate plan can help you protect your assets, reduce wait times for disbursements, and help you ensure the legacy you envisioned will be carried out.
2. Allows you to choose who will receive your belongings
When you create a will, you can designate your assets, beneficiaries, and executors to carry out your final wishes.
3. Let you decide who makes decisions for you
You may also need a healthcare proxy form and durable power of attorney document as part of an estate plan. These documents will ensure that your plan is carried out in the way you intend. An advanced directive appoints a trusted relative or friend to take care of your legal and financial affairs if you become incapable. And an advance directive gives someone the power to make medical decisions for you according to your wishes if you aren’t able to.
When opening an IRA, 401(k) plan, or an insurance policy, it’s important to include the information provided in your durable power of attorney or healthcare proxy.
What You Need to Know About Estate Planning
1. Prepare a list of all of your financial assets, personal property, and liability documents so you can calculate your worth
2. Get a referral to a qualified estate planning attorney from a financial professional
3. Designate your beneficiaries (or update them)
4. Make sure your estate plan is regularly reviewed
What Annuities and Life Insurance Can Do for Estate Planning
In estate planning, life insurance and annuities play a vital role. Life insurance provides surviving family members with financial security. When death benefits from life insurance are received, survivors can typically use the proceeds to pay off taxes and remaining debt, such as a mortgage, without having to go through probate (the process of transferring an estate).
The probate process is generally avoided by annuities with a named beneficiary, potentially providing direct income to beneficiaries.
Partner with other professionals to develop an estate plan by talking to a financial professional and learning more about the importance of estate planning.
Finding a real estate lawyer to protect your rights? Look no further and contact us through this number: (708) 942-8030