Estate Planning has become an essential aspect of asset distribution among relatives in the U.S. Not only does it avoid sibling conflict based on asset allocation, but also provides you with a piece of mind as you prepare for your final days. Death is inevitable and making final preparations for your family can be a daunting task. Nevertheless, you must approach such a subject with a cool head and inform your relatives of your last wishes. Having a written will can be an added advantage in the event you pass on through old age, sickness or even through a tragic accident.
Such a will clearly stipulates how your estate will be sub-divided among your family in a precise manner. However, it is common for such wills to be contested by unsatisfied relatives in case they are traces of foul play in the distribution of resources. On the other hand, the absence of a will triggers a probate case which determines the distribution of property. In such a case, the court is mandated to address the following legal issues to the letter:
? The allocation of assets from the estate to beneficiaries.
? Deciding the validity of pending estate claims.
Before commencing any estate protection plan, it is wise to contact a specialized attorney or tax advisor to guide you on the delicate processes involved in estate planning.
As your lawyer, their first order of business entails the creation of important estate planning papers such as a reliable power of attorney and a will. By your side, they will inform you on any pending tax issues payable to the IRS before the final proceeds are released to relatives. Additionally, the will also stipulates how your personal care shall be managed and by whom in the absence of life insurance. Such a clause ensures that you live a comfortable life once the sunset years set in.
It is important to obtain sound tax advice on how each asset will be distributed to your beneficiary. Such lawyers can minimize taxes payable, articulate your written wishes clearly and enlighten you on how to avoid mistakes. Your lawyer will also inform you on the various types of assets that can be included in your estate to benefit various trustees. Properties such as real estate, bonds, stocks, vehicles and life insurance proceeds all fall within the realm of estate assets and should be included sooner rather than later.