With the unpredictable world that we leave in, it is impossible to predict when we die. We might die when we are old, or tomorrow might be your last day. Therefore, it is vital to prepare an estate planning strategy for the forsaken day of your death.
It is naive to think that after the death of a person, all the assets transfer automatically. In reality, that rarely happens, they only receive a part of the assets if you do not have any will or trust. When the probate case starts, most of your assets convert to cash to pay off your liabilities. Therefore, it is vital to create a will or trust to protect your assets and make sure it reaches your family members.
An Estate Planning Strategy Is Important
When we talk about an estate, it is the collection of all your assets and liabilities that you own. Assets could be anything ranging from a car, real estate, bank accounts, commodities, stocks, or other valuable items. Even assets that you purchase using creditor’s money, and are under your name, include in the estate.
Creating a healthy estate plan is crucial for everyone. If you make an estate plan, you will be saving a lot of your family member’s time and money. Your estate plan will dictate everything that needs to be done concerning your assets and liabilities or debts.
The Probate Process
Whenever anyone thinks about a probate case, they tend to worry. Probate is a legal court case, where the assets of the deceased transfer to the beneficiaries after the dues clear. It is a widespread process that occurs all over the world, and all estate goes through the probate process. That is why we always need to follow a vital estate planning strategy.
In a probate case, the will of the deceased gets submitted, and the court will verify the will. Then the executor of the will has to locate all of the deceased assets and calculate the total value of the estate. Along with the assets, they should also identify all the liabilities. They also have to notify all the creditors about the probate process. You need to take care of the debts, and the remaining assets transfer to the family members. Feel free to hire an estate planning attorney to take over the case.
Estate Planning: Create A Will
A will is a legal document with proper instructions on what needs to be done to a person’s estate after their demise. Usually the will, also mentions an executor who will handle and manage the estate. When you make a will, you are ensuring that your family members will inherit your assets. If you feel like you need any guidance while creating a will, then hire an estate planning attorney.
It is always better to have a will created and keep to be on the safe side. If you do not create a will, then the state law will take precedent on deciding who gets what part of the share. Most of the time, your current spouse will receive most of the portion, followed by your children.
Estate Planning: Create A Trust
Trust is quite similar to the will, except the assets in the trust do not go to the probate court. A trust is a legal document that allows the transfer of assets from a grantor to the beneficiaries. When we talk about the trust, the trustee is responsible, manages, and protects the assets for the rightful heirs. A trustee has to follow every instruction that is present in the trust.
Many people indeed prefer making a trust over a will. A trust will help you avoid paying a hefty sum of the estate tax. Since the property directly transfers to the beneficiaries after you die. If you put any assets in a trust, those assets will never include in your estate.
If you are looking to create a will or a trust that can help your family members when you are no longer present, then hire an estate planning attorney to help you with your estate needs. After your demise, they can also advise your family with the probate process and case. They will be able to avoid and tackle all kinds of complications that arise during a probate case. Hope now you know the importance of a will and trust for your family members. It is time for you to make a will or a trust and secure your family’s future.