Creating an estate plan is a wise suggestion that anyone with property should do at a certain point in their lives. While it isn’t a requirement for living, it can help make legal negotiations and ownership matter much easier when the time comes. With the assistance of an attorney, you can take a few simple steps towards creating a thorough and necessary estate plan. Remember to name your beneficiaries and think about what you want to get out of the ownership of your estate.
Creating a Will or a Trust
You can decide to create a will or a trust – or both – to name your beneficiaries and decide when they will be granted the rights to your property. When creating a will, it is essential that you choose your heirs wisely, as they will be the ones taking over after you have passed away. Usually, the will is split between your spouse and your children.
A trust avoids probate and taxes, and you can choose to enact it before you pass on. There are clear advantages and disadvantages to both types, and you can decide which works best for you and your beneficiaries.
Avoiding Estate Taxes
There is an easy way to avoid federal estate taxes, which is to write them off as exemptions. If you gift an asset up to a certain amount of money, it will not be taxable once the beneficiary receives that asset. Usually, this method still requires that you file the tax itself, even if you do not end up owing anything.
Claim Power of Attorney
This is where having the advice of a legal professional can come into play – you should make a durable power of attorney so that you can have a trusted individual make decisions if you are unable to. If you are rendered too ill, or if you are unexpectedly hurt, be sure to name someone you trust to speak for you.
Stay Organized!
The best way to keep on top of all of the different steps and paperwork is to be sure to stay organized during the entire process. If you need to, you can hire one of our Algonquin trusts & estates lawyers to guide you through each part of the plan. We have all the resources you need at Jackson Abdalla Law Group. Creating an estate plan may not be completed overnight, but it can be achieved with the help of a professional.
