You have probably accomplished a great deal with your life. Over the years you have worked, planned and saved. Perhaps you have even made some sacrifices to achieve your current level of success. It's a sure bet that you will want to pass along your accumulated assets rather than hand them over for court costs, taxes or attorney fees.
Estate planning is the relatively simple process by which you prepare legal documents outlining your wishes for your estate upon your death. It can be difficult to plan for the end of your life, but this planning is necessary to protect your family and your assets.
What is your estate?
Your estate refers to your property, those things you own, including your total assets and liabilities. Your property includes your home, car, accounts (i.e. bank, retirement, and brokerage), jewelry, insurance policies and so forth.
The language of estate planning
It is understandable that the idea of planning for your family after die can be a little frightening. Familiarity with the terms used in estate planning will help you begin to develop some comfort with the process.
Estate: Refers to your property or those things that you own.
Property: Includes two categories, real (as in real estate/your home(s) and personal, which includes everything else such as stocks, bank accounts, car(s), jewelry, and so forth.
Intestate: Is a pre, or non-planning state. Dying intestate means that you have died without creating a will or trust to outline your desires for distribution of your estate.
Trust: Eliminates many of the financial risks in planning for the transfer of your estate from you to your heirs upon your death. Risks include taxes, probate, lawyers, creditors, judgments, etc. A trust can provide for the management of your estate if you become incapacitated as well reduce death taxes and assure a smooth transfer of your property according to your wishes. Trusts can be revocable or irrevocable. Talk with your tax or legal advisor about the benefits of each.
Probate: The process by which your personal property is legally transferred to your heirs upon your death. The probate process also identifies rightful heirs and determines how your assets will be distributed among them. Probate can be quite expensive (up to 10% of the net worth of your estate) but the expense can be avoided with estate planning.
Will: A written, legal document outlining your wishes for your real and personal property upon your death. You can also appoint a guardian for any minor children.
Beneficiaries: These are the people you assign to benefit with distribution of your real and personal property upon your death.
Your will can be an important tool of your estate plan. The goal of the estate plan is to allow you, rather than probate court and attorney, to maintain control of your assets. Planning allows you the opportunity to set forth clear directions and desires for your assets in the event of your death or physical or mental incapacitation.
Estate planning is a necessary and painless process. You will afford yourself peace of mind and you will smooth the road for your heirs in terms of property transfer upon your death.
Amy Nichols is a freelance writer and contributing author to http://www.howtowriteawill.com, a site providing free estate planning tips and information.
Chicago limo Skokie ..Saving for a Down Payment is hard work, so it's... Read More
Holy Shenanigans! More STUFF?Loosing one's business due to lack of... Read More
Do you have a 401(k) retirement account? Are you vested... Read More
Gas prices have soared to unimaginable heights of late. Since... Read More
Have you ever stopped to think about how your "mood"... Read More
**If it's Spam, it's a Scam!- If it sounds too... Read More
Vacations Made Easy: Buying a Florida Investment PropertyA relaxing beach... Read More
In this age of information, keeping track of your finances... Read More
If you've been to a shopping mall lately, you've probably... Read More
Your food budget is the most flexible area of your... Read More
You should thoroughly consider your business needs when selecting a... Read More
The Check 21 Law is the new federal law for... Read More
1. Don't focus on your finances.The reason most people get... Read More
Good money management needn't be difficult. In fact, there a... Read More
I think most of us have at some point in... Read More
If You Have an Existing Account and 5 Minutes, You... Read More
The judge had to ask the question, and we had... Read More
Single Mother's in need of Financial GuidanceBudgeting is key to... Read More
If you've developed a household budget to get your spending... Read More
If you're like most people, your personal financial records are... Read More
Australians, in general, constitute some of the worst savers in... Read More
This investment retirement account (IRA) is useful to you as... Read More
If you recently became a single parent and see your... Read More
I have to admit, I do it too. I complain.... Read More
Would you be interested in freeing up 10% to 15%... Read More
limo O'Hare Bonfield ..I've been going through and interesting growth period lately that... Read More
If you've developed a household budget to get your spending... Read More
Have you ever stopped to think about how your "mood"... Read More
Just about everyone has a checking account. Checks present easy... Read More
Future financial success is not a guarantee that any one... Read More
Each of us knows how to spend money, but do... Read More
1) HOW TO LOOK FOR A JOBA) The Chronological Curriculum:1.... Read More
When people speak about the increasing age expectancies, they generally... Read More
Doesn't it seem like the only impressive numbers we've seen... Read More
Have you ever thought about what you are going to... Read More
Women are charged more for dry cleaning services. Don't fume,... Read More
Things are so expensive these days. We seem to be... Read More
Would you be interested in freeing up 10% to 15%... Read More
People haven't always written checks to buy goods and services.... Read More
Are you interested in saving money off your grocery bills?... Read More
1. Lighting & Light Bulbs Install low energy light... Read More
**If it's Spam, it's a Scam!- If it sounds too... Read More
Many people graduate from college owing thousands of dollars in... Read More
Today I passed a thermometer at a bank that read... Read More
The Check 21 Law is the new federal law for... Read More
Our global society has had a wake up call in... Read More
One universal of humanity, no matter who you are or... Read More
Good money management needn't be difficult. In fact, there a... Read More
There is a new bill that is being passes, it... Read More
Here are some tips that can help you save money... Read More
Personal Finance |