Estate planning involves making arrangements to transfer assets to loved ones and ensure that your values and last wishes are fulfilled.
Should You Use Estate Planning?
Estate planning is not only for the wealthy. All Seniors should consider estate planning to protect the finances of their loved ones and safeguard their last will and testament.
Frequently Asked Questions About Estate Planning
Estate planning refers to making arrangements before your death to ensure that your assets are transferred properly and other desired wishes are carried out. The “term” estate typically refers to property, but estates can refer to any type of assets including cash, jewelry, cars, etc.
Estate planning involves more than just transferring assets. Your last will and testament can provide instructions for other areas, including what actions you would like to be taken if you become disabled and ensure your values are maintained when your will is followed.
A Will provides the instructions for how you would like your assets distributed after your death. However, before your assets are distributed, whoever is receiving those assets must go through the State’s Probate process. During this court process, your last will and testament is legally approved and executed.
Estate planning Trusts are handled privately and avoid the Probate process. Trusts are financial vehicles created by a “trustor” to legally hold assets for a beneficiary known as a “trustee”. Trusts also provide legal and tax protections and ensure assets are distributed properly.
No, people at all income levels should consider estate planning to ensure the financial security of their loved ones after they pass. Many people associate the term “estate tax” with the wealthy, but in reality your loved ones may face taxes or court fees for assets of any size.
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