Estate planning is an important endeavor for individuals who have assets to distribute after their death. It is in your best interest to contact professional aid during the planning process. Read on to learn more.
Estate planning is an important legal consideration for individuals who have assets that they wish to be distributed to heirs. There are many different procedures and documents to set up in order to cover an array of situations. This plan works to anticipate and arrange for distribution of all types of property. Without this legal guideline,
there are problematic ramifications such as probate, huge taxes, confusion and arguments between family members and wasted time and expense that may occur. Along with financial concerns, this is an opportunity to designate guardians and beneficiaries.
Some common devices which are used to carry out an individual's wishes include wills and trusts, as well as power of attorney for finances and medical needs. Living wills are also documents to be considered in order to reduce stress on loved ones should an accident or illness occurs unexpectedly prior to the estate owners' death. Below, we will go into detail for a few of the ways in which estate planning is carried out.
Wills: A will is a legal document or declaration that stipulates how a deceased person's assets will be distributed. These are drawn up by a lawyer and filed away. Beneficiaries, heirs and various family members often gather in an attorney's office to learn about the division when it's time to distribute assets.
Trusts: Trusts are created between at least three parties in order to transfer property. There is the estate owner, a trustee, and a beneficiary. Trusts can be set up with single or multiple trustees and beneficiaries.
Financial power of attorney: This is a certified document signed to give decision making power in a person's absence or if they're incapacitated. This is a common practice for someone who is out of the country or for an individual who becomes too physically or mentally ill to be responsible for such things.
Medical power of attorney: This certified document would sign over legal jurisdiction for making medical decisions. Examples would include a person becoming very ill or unconscious and not being able to make his or her own decisions regarding medical care. Decisions may include types of treatment, location of hospital, preferred doctors, medications and more. This is different from a living will where stipulations are written out regarding extraordinary life sustaining devices and techniques.
Guardianships: Estate planning also includes designating legal guardians for minor children or individuals who are disabled and need care. Some stipulations can be made and funds set aside to assure that disabled offspring will have ongoing medical care and needed devices such as wheelchairs, etc. after their parent or familial caretaker has died.
Probate: Probate is a legal process which occurs if a will or other declarations aren't in place. If an individual dies without a will, the process of probate can be cumbersome and expensive. Probate can be a challenging and lengthy experience for an individual's heirs; this is why proper estate planning is so necessary.
All individuals, no matter how young or old, need legal guidance in estate planning. Not only financial assets are distributed, but property and heirlooms are divided up as well. Anyone that is interested in drawing up wills, trusts, powers of attorney, or guardianship documents should contact a lawyer who specializes in estates.
