Although planning for the future financial well-being of your family may seem intimidating, it is an essential step to ensuring that your family and assets are properly cared for when you can no longer be there for them. A shocking 55% of Americans do not have a solid estate planned ahead for the future of their families, leaving them vulnerable to court-related expenses and worse. When creating your personal trust and estate, it is vital to know and understand the proper key elements of the process. Below are the top need-to-know elements when creating an estate.
How To Determine What Suits Your Personal Estate
One of the necessary initial steps to consider when planning your estate is what your family situation is. If you have children or own large assets such as a home, it is important to understand your family-setup to understand better how your estate will be mapped out. It is also important to measure the amount of assets you own to understand whether or not you will be subjected to estate taxes. Although some do not have enough assets to fall under estate tax laws, it is important to know this information prior to finalizing any will.
How To Avoid the Probate Process
One of the most widely used methods of avoiding probate is to create a revocable trust, which lets you transfer ownership of all assets to a trust that lists exactly what happens if you become incapacitated or pass away. Also, designating a beneficiary to certain assets such as a life insurance policy will ensure your estate does not enter probate, as your beneficiary will become the designated owner of all allocated estate accounts.
How Often Should I Review My Estate?
If you have completed your estate planning early in life, great. It is still essential to check your estate planning documents every three to five years to make sure you have designated the appropriate beneficiaries. If you have children and they are already grown, be sure to update the estate allocation every time there is a significant change in the family, such as a death or birth of a new child. When choosing the correct law team to represent and help compile your estate documents, it is important to have the right lawyers for the job.
The team at Heritage Law LLP, specializes in trust and estate planning, with years of experience as a foundation. If you have any questions or would like to schedule an appointment, contact the team here.