Table of Contents

Is Probate Required if There is a Will?
When is Probate Necessary in New York?
Best Estate Planning Lawyers in Brooklyn: Why it is important?
Do I need an Estate Plan?
Estate Planning for a Married Couple: How to do it?
Estate Planning for Business: Why it is Important?
What is Estate Planning?
What does an Estate Plan include?
Is Estate Planning only for the Wealthy?
Estate Planning for Singles: Widowed, Divorced, and Never Married!
Estate Planning for Pets: Why it is important?
Estate Planning for Children: How to do it right?
Estate Planning Checklist: Important Guidelines & Details!
Estate Planning for Business: Why it is Important?
What Is Estate Planning?
What Does an Estate Plan Include?
Is Estate Planning Only For the Wealthy?
Estate Planning for Pets: Why You Need To Do It?
Estate Planning for Children
Estate Planning for Singles
Estate Planning Tips for A Married Couple
Do I Need an Estate Plan?
Estate Planning for Business
Estate Planning Lawyer
/Common estate planning scams you must ignore
Benefits of Estate Planning for Low Income Individuals
Why Estate Planning for Minors is Important?
Estate Planning for New Parents & Couples!
How to do Estate Planning for Non-US citizens?
How to do Estate Planning for Separated Spouse?
Estate Planning for Young Families & Couples!
Estate Planning Goals For Blended Families
What is Estate Planning in a Digital Age?
Estate Planning Strategy In The Digital World
Importance of Estate Planning In the Down Economy!
Estate Planning Is The Best Tool to Save Inheritance Tax
Estate Planning Process & Step by Step Guide!
Why Estate Planning for Elderly Parents is Important?
How to do Estate Planning for Digital Assets?
Estate Planning for Childless Couples & How to do it?
Custom Web Design
Estate Planning Errors to Stay Away From
Estate Planning Documents: All Must Have Important Docs in Details!
Estate Planning At Different Ages
Estate Planning and the Military; Understand the Importance!
Estate Planning: What happens when your spouse dies?
Estate Planning: Living Trusts vs. Will Difference & Importance!
Estate Planning Errors Through Digital Means
Do You Need A Probate Attorney After Estate Planning
Do Retirement Accounts Go Through Probate?
Estate Planning: Difference between a Will and a Trust!
Challenging Estate Plans – Fraud
Estate Planning: Difference between a Living Will & Power of Attorney

Introduction

Ever wondered the fate of your assets when you pass on or when you become incapacitated? The truth is that you like most folks never entertain this kind of thought. After all, the subject of death is not something you want to imagine.

Nevertheless, the benefit of prior planning is an arsenal you shouldn’t underestimate. For this reason, you need to play your cards well. After several years of hard work, should your assets fall into unauthorized hands?

I bet you wouldn’t wish that for yourself. So, what’s the perfect solution? You need to consider estate planning. When it’s done in the right way and by the right professionals, it can save you a tad both while you’re around or when you’re gone.

This information is invaluable and getting it can be daunting. Therefore, in this piece, you shall discover more about estate planning. Also, you shall learn how you can use the vehicle to preserve, manage, and distribute your assets.

So, let’s get started!

The Purpose of Estate Planning

Estate planning is the vehicle you use to ensure your assets– houses, stocks, life insurance or pension– fall in the right hands. This is necessary when you are dead or still alive but unable to administer your estates.

You need the services of a probate lawyer to protect your wealth. Whereas there are multiples techniques of estate planning, two principal ones are; creating a Will and a Trust. Here’s what you need to know about the two.

When you create a Will, you identify in advance the person (s) to inherit your assets. Also, in the Will, you can mention the right guardian for your underage children when you are no more.

Writing a Will is tedious as you have to take it through a probate process. However, the benefits outweigh the hassle.

On the contrary, with a Trust, you appoint a trustee that administers your property wishes on behalf of a beneficiary. A beneficiary can either be your child (ren), a charitable organization or an educational institution.

The good news is that you can create a Trust when still alive or via a Will. However, if you do it through a Will, it will begin to operationalize when you pass on. Thus, effective your demise, a trustee takes charge of your assets.

Also, creating a Trust saves time compared with a Will. Whereas a Will goes through a probate process to be effective, a trust doesn’t need to go the long process. The good news is that it can come into effect when you’re still alive.

So, what are some of the benefits of estate planning? Keep reading to find out!

1. Tax Planning

Tax planning is one effective way of ensuring your beneficiaries enjoy maximum benefits from your estates. When you follow the right procedures, you reduce the amount or the value of the asset that the federal or state governments can tax.

What’s awesome is that you can counter these devastating impacts on your assets in easy ways. For one, you can consider establishing an AB trust. When either you or your spouse passes on, the trust splits into two.

For two, you can put a beneficiary through higher education using your estates. In the process, some portions of your estate are transferred to the institution where the beneficiary is studying at. Thus you reduce the taxable amount the IRS can come for.

2. Personal Needs Planning

It’s not easy to tell what the future holds. Therefore, you should be cautious about how you want to spend your life should you get incapacitated. With estate planning, you can appoint a trustee to administer your estates when you become sick or old.

Furthermore, you can opt for a life insurance policy. When this matures, it will take care of you and your loved ones. Thus, you may not need to incur extra costs when this time comes as you will have a fallback plan.

3. Organized Wealth Disposal

Would you like your state of residence to decide how your assets should be managed or distributed? I’m persuaded your answer is no. Therefore, after all the years of hard work, you need to have the right people managing your estates.

But how should you do this? You need not worry as you can accomplish this in two simple ways. You can opt for a will or a living Trust. A Will comes handy after your demise. When this happens, your preferred beneficiary takes charge.

On the other hand, you can use a living Trust even when still alive. This is especially important when you are incapacitated. Thus you’ll appoint a trustee to be in charge of your beneficiaries or yourself.

Final Thoughts

As the common adage goes, “failing to plan is planning to fail.” For sure, it’s not a good idea to wait until the last minute to plan your estates. This is an important procedure that you can do when still alive. So, why wait when you can have a Will or a Trust?

Estate planning will protect your assets from over-taxation, or mismanagement. If your estates mean much to you, then, today is the right time to take action. Consult with a professional estate planning attorney and protect yourself and your loved ones.

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