What is the importance of estate planning?
Many people think estate planning is only for people who are already at the end of their life, but that's not true. Estate planning begins when you're young and continues as you grow old. A good estate plan can help ensure that your assets will go to the people and causes you care about after you pass away.
This article will explore the different kinds of estate plans, the most popular ones being a will, living trust, and lastly, a revocable living trust. I'll cover some of the basics and then offer some tips on how to make sure that your estate plan stands up to legal challenges and is executed correctly.
Estate planning is so important because it helps you to avoid probate, which can be a long and expensive process. Probate is when a court oversees the process of distributing assets to the people who are entitled to them after a person dies. And trust me, nobody wants to go through it. It happens when no will has been made and there are no other valid legal documents such as trusts that direct how assets should be distributed at death.
The general rule is that probate happens in the state where the person died. So if you live in Wisconsin, but die in Texas, your estate will likely have to go through probate in Texas. Even if you have a will, there still may be some things for which you need court approval.
I've seen several cases of people dying without wills or trust documents and their families having to deal with bank accounts frozen for months while their estates were being settled by the courts! And let's not forget that an estate normally has expenses: attorney fees, filing fees, state charges, etc., all of which can be avoided if there is an estate plan in place before death occurs. A good estate plan can also help reduce overall taxes by giving you options on how income taxes and capital gains taxes are distributed among beneficiaries.
If you need consultation regarding estate planning please call this law firm for free consultation.
Parklin Law
(801) 618-0699
5772 West 8030 South, Unit N206, West Jordan, UT 84081