What is the Definition of Estate Planning?
The chances are that you are probably not spending too much time thinking about estate planning. You may be in your prime, but sorting your affairs now may be helpful because you never know when you will leave this world. There are many benefits of estate planning, including saving your family from difficult decisions and getting your property to loved ones quickly. Below, we take a look at the basics of estate planning.
What is Estate Planning
Estate planning involves preparing of the instructions that serve to manage the property of an individual in the event of his or her death or incapacitation. The plan includes the inheritance to the heirs as well as settling the taxes due from the estate. Most estate plans are set up with the help of an experienced estate planning lawyers. The Mattar Firm has highly qualified lawyers who have successfully handled estate planning needs for numerous clients.
Probate
The first step to understanding estate planning is to know the role that a court of law plays in the process. Probate refers to the process the court uses in settling a deceased’s estate. The time it takes to complete an estate distribution, and associated fees vary from State to State. The probate expenses can also take up to 10 percent of the estate’s value.
A Will
A will makes the probate process more straightforward. It guides the court and the executor on the final wishes of the deceased regarding his or her property. When it comes to court, anything that speeds up the process of distributing physical assets minimizes fees involved. Ensure that you mention all of your assets in the will to make this process easy and less painful.
Beneficiaries of financial assets
Financial assets such as a retirement plan or a life insurance policy demand that you name a beneficiary. These institutions will turn over the funds in the event of your death or incapacitation. If a financial asset has a named beneficiary, then there is no need to go through the probate process to acquire it. Savings and brokerage accounts are some of the financial assets that get neglected. If you intend to have an estate plan, then you should name a beneficiary for these accounts.
Estate Planning is something that you should do as soon as you have beneficiaries, such as children or relatives. Estate planning ensures that your family gets provided for in the event of your death. It also reduces taxes and makes retirement more comfortable. Contact The Mattar Firm today, our estate planning attorneys can help you set up your estate plan according to the law.