Posted on: 13 June 2016
For those that are concerned about how their passing will impact their loved ones, estate planning can be an essential task to undertake. Unfortunately, there are many people that may not be particularly informed about or experienced with this type of planning. If this applies to you, learning the following answers to some common questions may prove to be helpful.
What Are The Advantages Of Estate Planning?
There is a common assumption among some individuals that simply having a will in place is sufficient planning. However, it should be noted that processing the will of a deceased person can be a lengthy process, as it will have to go through probate court. Luckily, there are steps that can be taken to expedite this process. For example, the creation of a living trust can be an excellent way of avoiding lengthy probate court.
Additionally, you should be aware that there can be tax implications based on the value of the inherited items. Luckily, you can take steps in your estate plan to help to minimize the effects of these taxes. This can be done through the strategic use of life insurance policies. The benefits from these policies are not taxable, and as a result, you can name loved ones as beneficiaries as a way of offsetting the tax burden that can be caused by inheritance.
What Should You Expect From This Process?
The estate planning process can be rather intimidating, but you should be relieved to learn that there are many attorneys that specialize in helping their clients with this task. In order to help you, these professionals will need to arrange a meeting so that you can discuss your wishes, assets and debts. This may seem like highly personal information, but it is needed so that the attorney can recommend the best strategy for ensuring your survivors have the smoothest transition possible.
How Often Should You Update Your Estate Plan?
Sadly, there are some individuals that may make the mistake of creating a will or estate plan and never having it updated. However, you will likely accumulate additional assets or spend some of your savings over the course of time, and it is important for these changes to be reflected in the estate plan. To help minimize the confusion this can cause, you should make it a point to have your estate plan updated each year to reflect any changes in your financial status. While updating your estate plan may not be the most pleasant experience, it can be more than worth it to spare your loved ones the stress and confusion that can often follow a death. Contact an attorney like James M Snow for more information.Share