Estate planning is the preparation of tasks that serve to manage an individual's asset base in the event of their incapacitation or death. The planning includes the bequest of assets to heirs and the settlement of estate taxes. Most estate plans are set up with the help of an attorney experienced in estate law.
A will may be a relatively simple document that sets forth your wishes regarding the distribution of property; it may also include instructions regarding the care of minor children. An estate plan goes much further than a will.
How to create a bulletproof estate plan
Some attorneys may prepare a simple will or power of attorney for as little as $150 or $200. On average, experienced attorneys may charge $250 or $350 per hour to prepare more sophisticated estate plans. You could spend several thousand dollars to work with such an attorney.
There are four main elements of an estate plan; these include a will, a living will and healthcare power of attorney, a financial power of attorney, and a trust.
Types of Property You Can't Include When Making a Will
Deciding between a will or a trust is a personal choice, and some experts recommend having both. A will is typically less expensive and easier to set up than a trust, an expensive and often complex legal document.
“People at every age should put together an estate plan that fits their needs – from something very simple for a 30 year old to a fully funded trust plan for a 60 year old. Here are the typical estate planning documents and issues to consider by age.
Estate planning and inheritances
A good man leaves an inheritance to his children's children, but the sinner's wealth is laid up for the righteous. An inheritance gained hastily in the beginning will not be blessed in the end. Wisdom is good with an inheritance, an advantage to those who see the sun.
A trust can be a useful estate-planning tool for lots of people. But given the expenses associated with opening one, it's probably not worth it unless you have a certain amount of assets. Here's a good rule of thumb: ... Anything that is not titled to the trust when you die will have to go through probate.
Follow this checklist, and you'll have covered most, if not all, of your bases.
The costs for establishing a living revocable trust varies from state to state, depending on laws, and can also be affected by the size of the estate. The national average cost for a living trust for an individual is $1,100-1,500 USD.
How to Find an Estate Planning Attorney
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