Estate planning is the process of designating who will receive your assets and handle your responsibilities after your death or incapacitation. One goal is to ensure beneficiaries receive assets in a way that minimizes estate tax, gift tax, income tax and other taxes.
Estate planning ensures that all your assets – physical, financial and online – are inherited by the people to whom you want them to be transferred after your demise. The law might not take into account your personal relationships or preferences while distributing your assets if you die intestate.
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.
How to create a bulletproof estate plan
Estate planning is important for everyone, no matter their age or wealth. Estate planning avoids taxes and legal tie-ups, and ensures funds are bequeathed as you wish. An estate plan appoints the right people to take care of your kids and even you if you're incapacitated.
Types of Property You Can't Include When Making a Will
This online program includes the tools to build your four "must-have" documents:
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.
Simply having a last will does not avoid probate; in fact, a will must go through probate. To probate a will, the document is filed with the court, and a personal representative is appointed to gather the decedent's assets and take care of any outstanding debts or taxes.
This pre-death checklist will get your affairs in order
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