Everyone should have a will, even if you don't have anything valuable to pass on. There are many reasons that someone may need a will, including for providing for dependents and children in the event of their death and managing any debts or taxes that might be incurred from their estate post-death. However, there are many other benefits to estate planning, including tax planning and avoiding probate. Probate is the legal process of winding down an estate when someone has passed away, it can be costly and time-consuming, so you may want to consider a revocable living trust or will.
Estate planning is important because it allows you to make sure all of your affairs are in order before passing away. If you have children or significant assets, then estate planning is crucial so that the correct people get the correct amount of assets. When you pass away, it is important to make sure that your wishes for your estate are followed, and money is purposeful. Estate planning is a complicated process and can be done in many different ways. The most common will types include the last will and testament and the living trust. A living trust can be a very useful tool, but it involves more paperwork than a normal will or even an estate plan. A revocable living trust allows you to leave something to your children without going through probate.
What Does Intestacy Mean?
If you pass away without a will in place, then you are said to have died "intestate". Dying intestate can lead to a lot of problems for your family, especially if you have dependents or children. If the court has to go through the process of probate, that means that they need to determine what property belongs to you and what property belongs to your spouse. If there are minor children involved in your estate, it could also mean that they need someone appointed as the guardian of those kids. The court will determine the guardian of your children and will make sure that your wishes for your children are followed. If you have an estate plan in place, then this process can be much simpler for your family. In some states, a spouse automatically has the right to become the administrator of any estate, no matter what size it is.
How Do I Create a Will?
There are many different ways to create a will. You can write your own will, but it should be done using state-specific wording, so you may wish to consider using an attorney. You can also download a pre-written template online, as long as they are state-specific, or you can use software or online service that has predesigned templates. You can get help with creating a will from an attorney, or you can create your own version. You need to make sure that all of your wishes are documented in a will, and it should include the same information written in different ways both at the state level as well as in your own version.
What is a Trust?
A trust can be a useful estate planning tool. A living trust is essentially a written contract between two or more parties, which takes effect after the death of the trustor. A trustor is a person who establishes a trust, also known as the grantor, and the trustee is the person who manages and distributes funds within that trust. You can transfer different assets to beneficiaries through this type of trust, including real estate, investments, vehicles and even personal property. A trust is a very powerful estate planning tool which can help you to avoid probate, protect your assets and avoid any potential disputes with beneficiaries.
What is Payable on Death Accounts?
Payable on Death (POD) accounts are essentially bank accounts designated to the beneficiaries of an account, which means that these accounts will pass on to the beneficiaries upon the death of the owner. This is a type of asset that you might want to include in your estate plan if you own one in a POD account because it can help to reduce probate costs, and it can be used as a source of funds in case an estate needs money. These POD accounts are also a great way to leave assets to your children so that they don't have to go through probate, which can help them avoid some of the emotional and financial burdens that come with this process.
Conclusion:
Estate planning is a complex process, but you can make it simpler if you use these estate planning resources to help with your estate planning needs. A revocable living trust or will can be a great tool for your family to avoid probate, as well as manage the distribution of assets after your death. There are many different ways that you can use these tools, and they could save you money and stress during the probate process.
If you would like to learn more about estate planning, go here to schedule a consultation with a law firm that has the knowledge and experience to assist you with your estate planning goals.
