Simple Will Estate Planning Strategies to Protect Inheritance Assets
Will estate planning can be as simple as writing a last will and testament to transferring estate assets to a trust. The type of planning required depends on a variety of factors and is best discussed with a certified estate planner.
Will estate planning provides directives to loved ones as to how the estate should be settled. Wills are necessary to legally appoint a personal representative, bequeath inheritance gifts, establish guardianship or disinherit heirs. When a person dies without leaving a Will their estate is settled according to state probate law.
People often shy away from estate planning because they do not know where to start. Others believe they do not own anything valuable enough to pass along to loved ones. The truth is, things holding sentimental value are the items that spark family conflict. Regardless of how little or how much is owned, nearly everyone can benefit from planning ahead.
While the last will and testament is an essential element, two other documents exist to protect you. The first is a healthcare proxy. This document lets you write out what type of medical care you do or don’t want if you are declared brain dead. Most people prefer to keep these thoughts at bay, but in this case it is better to be safe than sorry.
The healthcare proxy can also include a ‘Do Not Resuscitate’ (DNS) notice. Often referred to as a living will, DNR documents instruct medical personnel to forego life-saving measures in the event of cardiac or respiratory arrest.
The second document is power of attorney assignment. The type of POA document required depends on jurisdiction. Many states use ‘springing’ POA which grants powers to the designated agent when the Grantor becomes incapacitated. Other states use ‘special’ or ‘limited’ power of attorney assignments which authorize specific rights to the attorney-in-fact.
Careful consideration should be given before granting powers to anyone. Not only to protect yourself, but to protect them. Appointing family members as estate administrators is common practice. This can cause friction amongst families that do not get along well. It’s important to select individuals who can make sound decisions and remain calm under pressure.
In the U.S. all estates must pass through probate unless inheritance assets are protected by a trust. As long as individuals engage in will estate planning the probate process can be relatively painless.
Probate is necessary to provide estate administrators time to notify creditors and government agencies of decedents’ death; secure and inventory assets; settle outstanding debts; and oversee distribution of inheritance gifts.
Some people can engage in will estate planning without the need for a lawyer, but most find the process confusing. Working with an estate planner or probate attorney can reduce stress and ensure estates are fully protected.
When possible, obtain referrals for estate planners or lawyers from family or friends. Otherwise, take time to interview 3 or 4 to find out which is best suited for your needs. Estate planning can be somewhat boring, yet overwhelming. It is a bit surreal to think about who will receive the fruits of your life work.
The process can be easier by working with an estate planner whose personality is suited to yours. A trustworthy source for locating probate lawyers is the American Bar Association website at abanet.org. A good source locating will estate planning providers is National Institute of Estate Planners at nicep.org.
Author Bio: Learn how will estate planning can help you avoid probate, minimize inheritance and estate taxes, and prevent probate litigation from author and probate liquidator, Simon Volkov. He offers an extensive estate planning article library at www.SimonVolkov.com.
Category: Finances
Keywords: will estate planning,last will and testament, power of attorney,healthcare proxy, estate executor
