Estate planning is a very prevalent topic, one that is quite important for everyone. To plan your estate, you don’t have to be as rich as Jeff Bezos, or Bill Gates. Estate planning is for the rich and the poor. Provided you are above the age of 18, you can make plans regarding your estate and update it as you age. Estate planning is crucial, that is if you value your future and the future of those you love.
This plan is done to ensure that even when you die, you’ll still have a say regarding how you want your estate to be managed and distributed among the family, friends and loved ones you left behind. So that brings us to the question, what is really an estate plan? Before we delve into what an estate plan is, why don’t we take a brief look at an “Estate?”
What is an estate? An estate is the net worth of an individual at a point in time. The net worth could comprise of your assets which could be your cars, houses, jets, investments, insurance, etc. When you die, it is very likely that you wouldn’t take your estate with you, but you can make plans regarding how you want the estate to be managed and shared; that is where an estate plan comes in.
What is an Estate Plan?
An estate plan can be referred to as plans made towards the distribution and the management of a deceased’s estate. This Plan would come into play not only after the death of the estate owner but if he eventually gets incapacitated.
One of the greatest mistakes anyone would make is failing to plan his or her estate. Because you don’t know when you will draw your last breath, it is important that you plan your estate like you’ll be gone the next day. You don’t have to wait till you are 60 or 70 before you plan your estate. Provided you have an estate, no matter how little it is, it is important that you contact an estate planning attorney and kick start the estate planning process.
It is important you note that if for any reason, you refuse to plan your estate, you’ll be putting your family and everyone you care about in a difficult situation when you eventually kick the bucket. Family and friends will battle for a share of your estate if you die without planning your estate; and I am quite sure this isn’t something you want for your grieving family.
If you failed to plan your estate before your demise, all you have worked for will be managed and shared based on the intestate law of your state. The process is usually hectic, expensive and time-consuming.
You may have heard of the word “Will” many times, but do you really know what a will is? Do you know what this crucial document contains? If you dint, you will find out soon enough.
A will is quite important provided an estate plan is involved. Without a will one won’t be able to know the beneficiaries of an estate including how the estate owner wants the will to be distributed. A will is basically a legal document contains your wish regarding all that you own. It contain the properties or assets that you own, including the beneficiaries of each assets. A will also contains the name of the estate executor who acts as the estate’s owner representative.
A trust is simply a legal media created by an estate owner and used to transfer assets to a trustee who then keeps them in a trust fund for a third party who is regarded as a beneficiary. People create a trust for several reasons. One of the main reason is to escape probate. If you have a wise estate planning lawyer, he or she will advise that you create a trust to reduce difficulties and fees for your loved ones.
If you need a competent estate planning attorney, for your estate plan, you can contact us. Our estate planning attorneys are well experienced and can provide you the assistance and advice you need to create a topnotch estate plan.