Estate planning is a very common term, just as it is quite important.  Many people out there are aware of what an estate is but they lack the knowledge about what estate planning is including what it entails. To plan an estate, you need to have an insight into the estate planning process.

Before we go deeper, let’s begin with this; what does estate planning mean?

Estate planning is all about making plans regarding how ones assets will be shared or managed when he or she dies or becomes incapacitated. Incapacitation may be as a result of a ghastly accident, a severe illness, etc.

Estate planning involves sharing the deceased property to designated beneficiaries by an executor who would be chosen by the deceased prior his death. Aside from the sharing of assets, estate planning also involves the settlement of all outstanding debts of the deceased. In fact, debt and taxes settlement always comes before the sharing of assets. After the debts and taxes of the deceased must have been settled outrightly, what is left over can then be shared to the chosen beneficiaries accordingly.

There exist several assets that could constitute the estate of a person, these assets includes cars, stocks, paintings, pensions, life insurance, business, including debt. As stated earlier, planning an estate is important for everyone, the rich and the poor, irrespective of how little your asset is. If one fails to plan is estate and he die, eventually, the state government will dictate how his estate will be planned and it would not be one he likes.

Why Should you Plan an Estate?

You have a plethora of reasons why you need to plan your estate. These reasons ranges from the need to safeguard family wealth,  providing for surviving spouse, family member or loves one, funding the education of your children or grandchildren, etc. One of the most significant step in planning an estate is the drafting of a will. A will contains information regarded how and whom you want assets to be provided to. Other simple task present in estate planning are:

• Designating a guardian for living dependents
• Choosing an executor.
• Reducing estate taxes by creating trust accounts using the names of the designated beneficiaries
• Making plans regarding your funeral arrangements
• Informing the designated beneficiaries of plans like life insurance, 401(k) s, including IRAs.

Because estate planning is an intricate process, you will need the help of a lawyer to guide you through the process so you don’t end up making a mistake or leaving something important out. If you reside in the city of Miami, it is advised that you hire a Miami estate planning lawyer, one who is vast and updated with the estate planning law of that jurisdiction.

Drafting a Will

When it comes to planning an estate, a will is very important. Without a will, an estate plan is as good as useless. The will displays the instructions regarding how the property of the deceased is to be shared amongst the designated beneficiaries.

The owner of the will states all his wishes in the will and then goes ahead to designate a trustee of executor who would ensure that the terms present in the will are all fulfilled. The will also states if a trust should be established after demise. A trust can be activated while the estate owner is still alive (Living trust) or it can be activated upon his death (Testamentary Trust), this decision hinges on the intentions of the estate owner.

After the demise of the estate owner, the realness of the will is determined by a process known as probate. Probate is not just carried out to ascertain if there was no foul plot in writing the will, it is also carried out to administer the estate and share the deceased assets to the designated beneficiaries.

 What can a Miami Estate Planning Lawyer do for You?

Planning an estate involves several steps. To ensure that you plan your estate according to the rules of the state you reside, ensure that you get professional help before you consider planning your estate. A competent estate planning lawyer in Miami should be able to guide you through the estate planning steps.