Showing posts with label Will. Show all posts
Showing posts with label Will. Show all posts

Sunday, September 5, 2021

Estate and Tax Planning: Where to Get Started

Estate planning isn't just for the super-rich. Almost everyone has an estate, whether large or small. Your estate includes personal items such as cars, property, jewelry, bank accounts, and investments

But estate and tax planning are more than just protecting your assets. It's about preparing for illness, disability, passing on, and planning for your heir's future.

Tax and estate planning can be a complicated road to travel, and it can be daunting knowing where to start. Here are a few tips on where to get started with estate and tax planning.

What is Estate Planning?


Estate planning is making a plan in advance and taking steps by naming the people, charities, or organizations you want to receive your assets after you die. Estate planning makes it easier for your wishes to be carried out at a later date.

What is Tax Planning?


Tax planning involves taking a hard look at your financial situation to reduce your tax liability. Tax planning is crucial to estate planning because your taxes can have a significant impact on how much you pass to your heirs after you die.



There are three related federal transfer taxes: gift tax, generation-skipping tax, and estate tax. Depending on the value of your estate, all of these taxes can affect the amount you leave your beneficiaries. You must use professional tax planning to ensure your beneficiaries are well cared for after you pass on.

Getting Started With Estate and Tax Planning


Your estate planning will change as your needs, financial situation, and family change. From the time you become a legal adult, start working, accumulating assets and investments, you should begin your estate and tax planning. Use these steps to get started.

Up-to-date Beneficiary Designations


Even if you're single and early in your career, you need to designate a beneficiary for your 401(k) and life insurance policy. Update your beneficiaries as your life changes and your family grows.

Health Care Proxy


A health care proxy allows someone to make health care decisions on your behalf if you can't do so yourself.




A Living Will


A living will allows you to leave instructions for the end-of-life treatment, such as non-resuscitation or life-sustaining treatment.

Durable Power of Attorney


A durable power of attorney allows someone else to make financial decisions on your behalf.

A Will


If you're early in your career and have no assets, you may not need a will, but a will is crucial when you own a home or other properties where you don't have a beneficiary named.

Guardian for Your Children


It's essential to your estate planning to appoint a guardian for your children if both parents die or if you're a single parent with sole custody.

It's never too early or too late to begin estate and tax planning. Using an attorney who offers innovative solutions for tax and estate planning is the best way to secure your family's future after you pass on.



Tuesday, February 2, 2021

5 Reasons Why You Should Have a Will



Creating a will is a crucial consideration that can save your loved ones from many unfavorable situations. It gives an easy time for the people you leave behind when you die. Some people often fail to write a will earlier enough, which leads to many complications. Below are reasons why you should create a will.

Reduced Disputes


The will gives a clear image of what should happen with your money and property. There will be disputes among your loved ones because the will states who should inherit after you. If you don't write a will, some people can move to court, seeking to inherit your property against your wish.

The law can decide how to pass on the estate, and this can be unfair to some of your family or partners who had the right to inherit your property. If you find yourself in a situation where you've been deprived of your right of ownership, you can seek help from a will attorney to handle the case for you in court.

Protects Your Business


A will protects your business against individuals who may have no right over it. It shows who should take over your company when you're gone. It could be your family members, friends, or business partners.




Failure to write a will has been a major contributing factor to the collapse of many family businesses because those who get ownership rights often end up mismanaging it. You can choose the right person to take over your business in the will.

Nominate a Guardian for Your Children


You've been taking care of your children when you're alive, but when you're gone, it may be challenging for your kids to survive if you do not write a will.

A will shows that you've left something for your kids, and whoever becomes your children's guardian has a right to access your property to take care of your children.

Identify a Property Manager


When you leave a will for your kids to inherit your property, it should also indicate a property manager who should be an adult. The person is responsible for ensuring that the property is well-managed to avoid misuse that could lead to your business's collapse.

Decide Who Inherits Your Stuff


A will shows the right person to take over your assets when you die. If you die before creating a will, your state law rules out who to take over your property, or it'll be distributed among your descendants. It could be your spouse, children, parents, friends, or mentors.

Some people may take advantage of the situation and claim your property against your wish. This can be unfair to your close associates who'd have taken over the estate.

Ensure you close all gaps concerning your will when you're still alive. You do not want to leave frustrations to your family, friends, or business partners. It'd be best to work with a professional who understands how a will is written.


Friday, May 16, 2014

Creating a Will: What Everyone Tends to Overlook

Creating a will is something everyone should do at some point, regardless of the level of financial assets involved. Money, property, and real estate are the common primary considerations when deciding how items should be divided upon an individual's death, but there may be a few other considerations most people do not evaluate. Death can create legal confusion for those left behind, and those who die intestate will have all personal property divided according to the laws of the particular state. A will is a legal method of circumventing that mandated division.

FINANCIAL ASSETS


In most states, all personal property is automatically transferred to the surviving spouse at the time of death. Families that include duly entitled children from previous marriages may need to update personal wills regularly to avoid legal contention after an unexpected death. Financial asset transfer can be assigned by the primary individual during the will process, instead of leaving the courts to make the decision later. A will can be contested in court, but overturning a will is different from suing for entitled assets, and usually more difficult. Savings and investment growth should be considered when making the will, as these financial instruments tend to fluctuate in value. The same is true for real estate property. An intestate court transfer order for financially valued articles can mean a much larger settlement for the plaintiff without a valid will.

EARLY PROPERTY TRANSFER


Transferring property before death is a good way to avoid taxes and ensure your personal property is divided according to your wishes. This can be a crucial financial decision, regardless of financial asset level. The concept of the death tax is real, and normally applies when not addressed in a valid will. This can also include practically any type of property. Wills should be done with careful prior evaluation, and early transfer often gets left out of the equation. It is always important to allow for all options, especially when it means the inheritor maintains as much total value as possible.

GUARDIANSHIP and CHILD CUSTODY


There is more to making a will than merely assigning financial assets. Minor or disabled children are a family asset as well and proper instructions should be left indicating the guardian decedent's wishes on custody. This can include disabled adult children who live at home or with a guardian individual. Do not leave this important issue out when it applies, as the decedent has the legal right to recommend a living situation for either minor children or disabled legal dependents. In addition, this can also apply to the primary will maker with respect to predesignated power of attorney and health care before a health condition could render the primary incompetent. Property is not the only component to a valid will. These dispositions could even include custody of a pet.

SEPARATE WILLS


Married couples should always have independent wills because it leaves clear designation for property that may be later contested, especially when ex-spouses and step-children are involved. Many married couples have there own personal property, as well as community married property, so it is easy to have a complicated situation. Procrastination is not a good idea either, as the most complicated will cases come when the decedent was not prepared and no acceptable personal will can be located. Accidents happen all of the time, so being prepared is always best.

It is not necessary to retain an attorney to prepare a valid will. Even in simple situations, a will can be prepared with one of the many available do-it-yourself will kits, including instructions on notarization of the document. As long as it is properly notarized, it can even be written on scratch paper when acceptable. It may be a good idea to check into purchasing a fire proof safe before or shortly after making the will. If there is only one document, a SafeWorld a division of Dial locksmith may be the safest protection device and it always at the individual's disposal. Fire proof safes from Edmonton are also excellent for protecting other legal instruments and significant amounts of cash, deeds, and ownership documents. Wills should be re-evaluated each year at tax time, and potentially each quarter for those individuals with significant wealth who monitor growth on a daily basis.

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