Everything you own makes up your estate plan. Even properties with loans or credits, they all make up your estate. Making proper estate plans dictates how you want these assets to be distributed upon your death. Also, while you could name a beneficiaries to receive these assets while you are alive, you can also name a desired individual to handle all your financial and medical decision when you become incapacitated. The absence of a last will or any other estate documents means the deceased property would be shared through intestacy laws present in Miami. The intestacy administration is conducted by the court. This could be a trying time for the deceased family members, as they would be left to go through long processes to get the deceased assets.
Estate planning options
There are several estate planning options that would easily facilitate the implementation of your life plans. However, consulting an estate planning lawyer near you in Miami would good greater good. The list of major estate plans include, last will and testament, durable power of attorney, advance medical directives, revocable and irrevocable trust.
Last Will: Last will is perhaps the most documented estate plan. With a last will you can solely direct who take inheritance of your possession when you die. Also, should in case you have minors, the last will can contain names of guardian and the type of guardianship you want for your children.
Living trust: this one essential estate document that not only dictates what happens to you when you die but also should any disability occur. Living trust can covers three phases of one’s life: when you are alive and well, when you become mentally incapacitated and lastly after you die. Through a documented living trust, you can decide who handle you medical and financial decisions. You can also transfer your assets to a living trust. The advantages of having a living trust aside a will is enormous, as the trust document does not require probate to implement transfer of asset.
Financial power of attorney: should you plan to transfer the control of business, or financial decisions to a trusted fellow, you would need the financial power of attorney to implement this decision. This document allows a desired individual handle making financial decision on your behalf when you become incapacitated and unable to handle your financial affairs.
Revocable and irrevocable living trust
The revocable and irrevocable living trust perform the same function but operate in a slightly different manner.
The revocable living trust permit change and flexibility of the trust. You can remove particular assets or change the named beneficiary in the trust. Altogether, a revocable trust can be cancelled or dissolved. Thus, this means that the trust maker retain the power over the trust during his lifetime.
However, the irrevocable living trust cannot be undone. Once the assets has been transferred into trust it cannot be changed. This type of trust is effective in reducing excessive estate taxes. A revocable trust usually turns permanent or irrevocable upon the death of the trust maker.
Reason why you need estate plans
You don’t need to get so old or to have acquired all known assets or possession to start making estate plans. The more you wait, the more likely you might need to make a rush hour plan likely open to forfeiture, non-implementation, and extremely long probate processes.
Why you need an estate plan.
Protect your loved one or assets beneficiaries
Estate plan would protect your family and loved ones from loss of any kind. You can appoint a guardian for minor children. Through a well-established estate plan, your assets beneficiary would not need to go through the stress of probate before getting the assets that are rightfully theirs.
Reduce estate taxes
Proper estate plans would reduce excessive estate taxes. When an asset is transferred to a beneficiary, federal and state taxes and other types of inheritance taxes is reduced. Also, married couples can create a trust account or have their assets in a joint trust to reduce taxes.
To avoid probate
A proper estate plan would not need to go through probate before implementation. An estate planning lawyer would typically guide you to creating other estate document. These documents such as living trust would eliminate the long probate process when transferring assets to desired beneficiaries.
Contact a Mimi estate planning lawyer closest to you today.