Estate planning is all about protecting your assets. It entails making your final wishes. It protects your family from creditors and estate taxes. It gives all members of your family peace of mind when you are gone. That’s why you should create a plan that reflects your wishes, goals, as well as legacy. A good plan should be comprehensive, accurate, and objective. For the best estate plan, visit this website. The following are the top strategies of estate planning you should use.
Revocable Living Trust
This simply refers to a legal document that’s designed to help beneficiaries navigate the complex probate process. With a revocable living trust, you’ll find it easy to manage your assets during your life. Plus, it’ll ensure that your property is well-managed after you’re gone. Your loved ones will instantly receive their shares after your death, hence avoiding the tedious probate process.
Effective Power of Attorney
This will help you identify a trustworthy agent to manage your finances should you become incapacitated. For instance, he or she might assist in settling your medical bills and managing your assets.
Life is unpredictable. No one can tell when they’ll become ill or incapacitated. Thus, it’s always important to prepare in advance. Hire a trustworthy attorney to assist in creating a durable power of attorney. This will keep you and your family safe while also ensuring that your future is guaranteed.
Medical Power of Attorney
When it comes to estate planning, it’s critical to have a healthcare power of attorney. Having this legal instrument will make it easier for you to appoint someone to handle your healthcare issues in case you become incapacitated.
Gift Tax Exclusion
Take advantage of the tax exclusion. This estate planning technique allows you to reward your loved ones with gifts without subjecting them to gift taxes. Plus, they won’t have to pay any federal and state estate taxes. It’ll also give them peace of mind to grieve your loss. They won’t have to run up and down trying to fight for their inheritance.
Insurance Trust
An irrevocable trust will prevent your loved ones from paying estate taxes on the proceeds they’ll receive from your life insurance policy. When you create a trust, the proceeds of your life insurance policy will be automatically transferred to your loved ones if you, unfortunately, pass away.
Family Limited Partnership
Do you own a family business? Well, it’s time you consider establishing a family limited partnership. This will provide asset protection from creditors. Plus, it’ll make it easier for you to give your loved one gifts while also maintaining your management control.
This entity is utilized for providing asset protection to families and safeguarding limited partners against creditors. Even more, this legal tool helps in enabling gifts to family members and minimizing the transfer tax value on your property.
Education Trust
This is specifically intended to designate assets that your kids will use for their education. An irrevocable education trust ensures that your children use your assets for the sole purpose of pursuing education and not spending it on other pursuits.
Interest Trust
If you would like to transfer part of your property to a charitable organization, then consider building a charitable remainder interest trust. When you make a charitable contribution, you’ll be exempted from paying certain estate and federal taxes.
Private Foundation
When it comes to estate planning, this is another incredible idea. If you have significant assets, you can utilize private foundations to obtain gifts, income, and estate tax deductions. Even more, this strategy will allow your loved ones to retain control of property within the foundation.
Selecting The Right Lawyer
Look for a knowledgeable attorney who has extensive experience in estate law. Go online and check their reviews. Have they been able to successfully handle cases similar to yours? Have they represented several clients in Will ligation? If not, then that could be a red flag.
A good attorney will be attentive and considerate. They’ll ask the right questions and carefully review your situation. They’ll then draft a comprehensive estate plan that perfectly suits your needs.
Take your time to conduct some research to see what other clients are saying about the quality of their services. Interviewing different law firms will enable you to identify the best attorneys. Find out about their charges before making your final decision. In these tough economic times, you want to make sure that you aren’t being overcharged.
Why Estate Planning?
If you care about your family, then be sure to create an estate plan. This is one of the most thoughtful things you can ever do. Make sure that your plan is enforceable and avoids tedious court interventions. It’s also imperative to ensure that it expresses your final wishes, names beneficiaries and protects your loved ones from high costs, as well as, taxes.
Find an attorney who’s experienced in drafting enforceable documents and handling courtroom affairs. Plan to protect your legacy and keep your family safe. Don’t wait until you’re old to create an estate plan. The best time to do it is now!
Key Takeaway
Once you’ve drafted your estate plan, you’ll need to review it frequently. You need to keep your will current and ensure that it reflects your latest life changes. Many life changes could happen as time progresses. It’s therefore a good idea to keep updating your plan to include the most current changes. These updates could include a new family member, a marriage, or a divorce.
It’s advisable to review your estate plan after every three years. Remember, this is one of the best things you can do for your loved ones. So, don’t let your generosity fall to the wayside simply because you made a simple mistake.
The Bottom-Line
If you care about your family members, create an estate plan. Draft power of attorney. Create a will. Think about guardianship. Invest in your children’s future education. Create an estate plan to protect your legacy. Let your wishes be executed through an estate plan. Hire a good attorney to help you.
