What is Estate Planning?
Before we delve into what estate planning is, let’s consider the word “Estate”. What is an estate? An estate is simply the net worth of an individual at a certain point in time. The individual’s net worth can be summed up as his assets which could be houses, cars, real estate, etc.
Having known what an estate is, let’s fill you in on what estate planning is. Estate planning is simply plans involving the maintenance and distribution of a decedent’s assets or properties upon his death or incapacitation.
As we all know, once a person dies, he leaves all he has behind. If he planned his estate before his demise, he will have a say regarding the distribution and management of all that he left behind. That is, his assets will be shared based on what is written in his will which is a core component of an estate.
If, for some reasons, he failed to plan his estate before his demise, his assets will be distributed by the state government based on the intestate law. This process is not always straightforward. It’s long, expensive, and can be messy. So if you love your family so much that you don’t want to put them through pain and stress after your demise, ensure you plan your estate. Life is uncertain and one isn’t sure when he will draw his last breathe, therefore, it is best you plan your estate as early as possible then update it when necessary.
Because estate planning involves a lot of experience and knowledge of your sate estate law, you will need the guidance of an estate planning lawyer when planning your estate. It is not always advised to plan your estate on your own to avoid making mistakes or making an estate plan that doesn’t comply with the estate law of your state.
What is a Will?
A will is a very significant element of an estate plan. This legal document contains your wish regarding all that you own. It contain the properties or assets that you own, including the beneficiaries of each assets. A will also contains the name of the estate executor. An estate executor is one who will act on behalf of the deceased upon his death. He is to see that all the wishes of the deceased (as stated in his will) are fulfilled. It is also his obligation to see that all unpaid debts and taxes of the decedent are discovered and settled. He can either decide to do this on his own or with the help of an estate planning lawyer.
After the death of an estate owner, the will undergoes probate. Probate is simply carried out to determine the authenticity of a will. The probate process is often complicated, though this depends on the circumstances surrounding the deceased’s will. Creating a Totten trust is an effective way to reduce the estate taxes that would be owed after your demise. It is also an effective way to prevent probate for an account.
Totten trust is basically a bank account which is regarded as a POD (payable-upon-death) account. A POD is an account which can be easily accessed by a designated beneficiary upon your death. Such an account won’t have to undergo the stressful and challenging probate process.
As stated, probate proceedings aren’t only stressful, they also take time. If you don’t want to go this stress, then creating a Totten trust is the best way out.
Who is an Estate Planning Attorney?
An estate planning attorney is an individual who can help you with the planning of your estate. They can also offer you the best advice on how to plan your estate. Estate planning lawyers are experienced in the estate planning process including the estate law of the state you reside in.
If peradventure, you live in the city of Miami, It is advisable that you hire an estate planning lawyer in Miami. To find one, simply visit Google and input the words “Miami Estate planning Lawyer near me” then select from the listings, probably one close to your area of residence.
