OK, you've thought about this for a long time. However, you continue to put it off. What is that very pretty girl saying? Putting off your estate plan is a major headache for your heirs if something happens to you.
Yes, with a damaged economy along with job layoff and cut backs, everyone has been tightening their financial belts. Estate planning is just as important as planning for your retirement. I many jursidictions if you die without a Will (intestate), the state will decide who gets what. Not a good idea, plus if the estate has assets such as real property, then you will be faced with the agonizing, long, drawn out ordeal called probate court. After the court appointed administrator and probate lawyers get their fees, your heirs will get what ever is left over. Yikes!
A Will or a Living Trust?
What is a Will? It is a legal document that spells out exactly how you want your estate assets to be distributed upon your death. Your will can also include provisions for minor children, grandchildren and your pets (fur children). Your will also names the person or persons who will be Executor and a Guardian for your minor children. If you don't own a lot of property or have real property, a will is your best bet.
A Living Trust (revocable) is an instrument that allows you to transfer your assets including real property and other valuable tangible items in order to avoid probate court. There are many trust declarations and you should consult with an experienced estate planner to decide which living trust is the right one for you.
The Blending of Families:
You really do need to avoid bequesting specific assets to specific beneficiaries, based upon today's market values. More and more families are creating living trust declarations that allot income to spouses, however, gives control to adult children, especially if the spouse gets remarried.
Joint Accounts, Why it is a Bad Idea:
Many times, older people name an adult child as a joint account holder on certain assets such as checking accounts, savings accounts, certificate of deposit investments. This is done to make it easier for the adult child to withdraw funds to pay bills or even distribute assets to heirs. This is a huge mistake as it puts the remaining heirs (children) in the position of potentially having to prove their parents did not intend to cut them out of the estate and futhermore could present gift tax issues for the adult child who is named on the joint accounts.
If you have a question about estate planning, including wills, living trusts, medicaid trusts, etc., please contact us at http://www.nclc.law.officelive.com/. All questions are confidential.
(C) Copyright 2009, Ellen R. Day, Peeper Talk.
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