Planning for the future is something that everyone should do, not just those who have a lot of wealth. The reason for this is simple: no one knows what tomorrow will bring. You never know when you could lose your job or fall ill and need to rely on others to live comfortably.
Estate planning can help ensure that you can take care of yourself and your family if these situations ever arise. This article will discuss how estate planning works, the importance of including a will as part of an estate plan, and more!
Assess the Expanse of Your Estate
Estate Planning begins with assessing the expanse of your estate. A living trust is a piece of property you own as an individual, which also entails some legal responsibility for asset management during your lifetime and afterward.
A will can offer guidance on distributing assets when a person dies – but there are so many things it cannot do. For example, if any beneficiaries die before you or cannot manage their inheritance (such as through dementia), they forfeit all claims to the wealth bequeathed to them in your will.
If needed due to potential conflicts among heirs at law or between trustees and executors, probate may still happen even though someone has died without a will. Probate includes court-managed administration of estates, which can be time-consuming and costly.
Depending on the size of your estate, a living trust may not make sense for you. Nonetheless, it is something to consider giving maximum protection against probate proceedings.
Create a Plan and Document
Estate planning is the process of documenting and organizing your wishes for the distribution of property if you become incapacitated or die. It includes drafting a will, power of attorney documents, medical directives, and asset title transfers, including life insurance policies and joint holdings with other persons.
The first step to estate planning is assessing what assets are under your control so the executor can distribute them according to your wishes after death. The next step is developing a plan: who should receive which assets? What trusts should you set up? How do you want to handle the debts? Who has authority over making health care decisions on behalf of someone unable to make them themselves?
Before completing any final documentation, it’s essential to involve at least one witness to make sure that you can validate the provisions in your plan. Finally, it’s critical to store all documentation properly, so a loved one or executor will know precisely what you wanted and where they need to look for it when the time comes.
The last estate planning step is discussing appropriate end-of-life medical care with doctors, physicians, family members, and close friends. You want these discussions documented as well for clear communication about how much discomfort you’re willing to endure if the illness worsens before death occurs naturally.
Estate planning is a necessary process to take on to secure your family’s future properly. First, you need a will, which is the document that dictates how you want to distribute your property and assets after death. However, it could be difficult or impossible for families without personal knowledge of their loved one’s wishes to determine who should receive what without an estate plan. It can also lead to disputes among heirs as they argue over who rightfully deserves certain items because the deceased individual set up no previous agreement.
Engage a Living Trust Law Firm
Engaging a living trust law firm may help to reduce the time and stress of estate planning. There are many steps that you need to take to secure your family’s future with a will properly. You can create a legal document, including witnesses, and ensure all other necessary documentation. Still, there will be more work for an individual without professional experience or education on this topic.
It is crucial for you as the executor of the plan or legal guardian. If children are involved, find someone who knows how best to proceed through each step legally so they don’t end up causing any unnecessary problems later down the line due to a lack of knowledge about wills.
Include a Witness
It’s essential to have a witness when you create your wIll. It is someone who can testify that they were present when you signed the document, and so their word is more credible in court if there are any disputes related to it being valid.
The person should be competent enough to execute wills of themselves- not too young or old, for example- as well as make sound decisions while under duress (like testifying about one’s signature). Another option would be to find an independent third party without solid ties with either side of the family; this way, they’re less likely to want favoritism in the matter at hand within your estate planning documents.
Including a witness gives them legal standing on what goes into the will and can help keep things clear. This person should not have been part of drafting the will and should not be involved in its execution. It ensures that they can testify as a witness without any external coercion or influence from either party.
Properly Secure All Documents
According to the National Association of Estate Planners and Councils, improperly secured documents following a person’s death leads to things like fraud cases where people forged wills or changed them. Therefore, your family needs to be able to avoid any issues that could arise from document tampering.
The benefits of hiring this type of lawyer include knowing what you need to take care of before a loved one dies and assurance that taxes will not go unpaid as they can remain set up until needed (avoiding probate court). It also provides peace of mind for beneficiaries, ensures assets stay secure during vulnerable periods, and the ability to choose how you will distribute your assets.
The final step in an estate plan is to store the documents securely. It can be easy for these essential documents to get misplaced, so you must have a system of organization and storage.
Conclusion
In conclusion, estate planning is a crucial step towards ensuring the safety of your family and assets. However, as with any other type of investment, it’s essential to do some research and find out what suits you best.