Here's Why You Need an Estate Plan
No matter what line of work you are in, estate planning has facets that apply to everyone, and it comes down to documenting wishes and avoiding probate and unnecessary taxes. Too many people put it off, but, in general, the sooner you do it, the better.
It’s always the right time to do your estate planning, but it’s most critical when you have beneficiaries who are minors or with special needs. While it’s likely that most adult children can work things out, even if it’s costly and time-consuming in probate, minor young children must have protections in place.
Wills are frequently written so the estate goes to the child when he reaches age 18. However, few teens can manage big property at that age. A trust can help, by directing that the property will be held for him by a trustee or executor until a set age, like 25 or 30.
Probate is the default process to administer an estate after someone’s death, when a will or other documents are presented in court and an executor is appointed to manage it. It also gives creditors a chance to present claims for money owed to them. Distribution of assets will occur only after all proper notices have been issued, and all outstanding bills have been paid.
Probate can be expensive. However, wise estate planning can help most families avoid this and ensure the transition of wealth and property in a smooth manner. Talk to an experienced estate planning attorney about establishing a trust. You can name yourself as the beneficiary during your lifetime, and instruct to whom it will pass after your death. A living trust can be amended or revoked at any time, if circumstances change.
The title of the property is transferred to the trust with the former owner as trustee. With a trust, it makes it easier to avoid probate because nothing’s in your name, and the property can transition to the beneficiaries without having to go to court. Living trusts also help in the event of incapacity or a disease, like Alzheimer’s, to avoid conservatorship (guardianship of an adult who loses capacity). It can also help to decrease capital gains taxes, since the property transfers before death.
If you have several children but only some work with you in the family business, an attorney can help you with how to divide an estate that is asset-rich and cash poor.
If you or a loved one needs assistance with estate planning, do not hesitate to contact The Stegall Law Firm to schedule a consultation. We are here to help.
