5 Things You Need To Know About Estate Planning

Much like taxes, death is an unfortunate part of life. Surprisingly, 55% of Americans die without a will or estate plan, in turn, opening the flood gates for potential lawsuits and bitterness among family members of the deceased. Whether you live in Plymouth or elsewhere, if there is no will, ultimately the courts will decide how your property is distributed.

In order to minimize hurt feelings or possible hostility between family members, it’s crucial that you make your final wishes known through a process commonly referred to as estate planning. It protects your family and finances after you die. To help you get the process started, Gold & Associates, P.C. offers these five tips below.

1. Seek legal counsel to develop a comprehensive, detailed will.

A will is a traditional legal document that names individuals who will receive your assets after your death. When creating your will, you’ll appoint an executor who will manage your estate, pay your debts, expenses as well as taxes. He or she will also distribute your assets according to the will’s instructions. Your will may also include nominations of guardians for your children if they are under the age of 18.

2. Get life insurance. It plays a big part in estate planning.

Life insurance is general a part of almost every estate plan and is a major source of support to pay death taxes, funeral expenses, unpaid debts, education expenses and occasionally fund retirement plans, too. Make sure that when you purchase a new policy or change an existing one, you look at the rest of your estate planning to get the most benefit from your policy.

3. Designate someone to serve as your power of attorney.

“Life planning” also plays a big role in estate planning. Whether your estate is large or small, you should make a point to designate someone to manage your assets as well as make health care and personal care decisions for you if you ever become unable to do so for yourself. Because the role requires a lot of responsibility, you should provide this person, preferably someone your trust wholeheartedly, with as much instruction. Knowing your wishes will make the process a lot easier for him or her.

4. Consider setting up a living trust.

During your estate planning, living trusts can be a big help. Without proper planning, your assets will be handled through probate court—which can be expensive and painfully slow. When you create a living trust, you transfer ownership of your property and assets to the trust while you are still alive. These assets can then be quickly and easily passed to designated beneficiaries, in turn, avoiding the need for probate court. Unlike a will, a living trust can be kept confidential.

5. Consult with a qualified estate planning lawyer.

End-of-life planning can be overwhelming, complicated and even emotional. While it’s possible to do your own estate planning, many legal experts advise against it. To make sure your exact wishes are carried out and the appropriate legal documents filled out properly, we recommend seeking professional legal assistance. It will give you peace of mind in the long run and your loved ones will thank you.

Wills, trusts and other legal documents used in the estate planning process should only be prepared by a qualified lawyer. Gold & Associates, P.C. is dedicated to providing our clients with quality legal services in the areas of estate planning, probate, real estate, taxation, business, and retirement planning. If you need our assistance, contact us today at (734) 335-7100. You can also email us by clicking here.