Estate Planning For Beginners
Before you begin drafting an estate plan, it’s important to review some basic principles. You’ll want to make sure that your loved ones will be taken care of, including your children and spouse. Using the right legal documents can protect your family from unnecessary legal and tax burdens. In addition to ensuring that your loved ones are taken care of, estate planning will help you avoid probate, and will prevent family members from having to pay for the costs of a probate.
Asset inventory
An asset inventory is a list of tangible and financial possessions. It also includes debts and insurance policies. This information is vital for settling estates. The inventory also identifies how much each asset is worth. It should be updated regularly and kept in a secure location. You should also include a brief description of the items, such as their price, location, and who would be able to access them.
Creating an estate inventory is an essential first step in ensuring that your loved ones are provided for when you die. An incomplete inventory can cause snags in the probate process, delaying the distribution of assets to heirs. An asset inventory will also help your attorney determine the best strategy for you and your family.
Power of attorney forms
When it comes to estate planning, one of the most useful tools is a Power of Attorney (POA) form. These legal documents are often inexpensive and fast to prepare. However, if you want to be as thorough as possible, you may want to seek the help of an estate planning lawyer. A Power of Attorney must be signed and notarized, and it should be certified several times. A POA can be General or Durable, which will last until a person becomes incapacitated. Both types of POA should be properly drafted to ensure your wishes are met.
You can find many different POA forms online. However, you should remember that the laws governing these documents vary from state to state. This is why it is important to know the laws in your state before you set up a power of attorney. For example, most states require a power of attorney to be written, witnessed, and notarized. To find out the specific requirements in your state, visit the official state website or speak to an estate planning attorney.
Trusts
One way to customise your estate plan is to use trusts. These documents can be set up under a will or separately during your lifetime. This allows you to create a unique document that addresses your specific needs. You can set up age attainment provisions and parameters for how the assets in the trust will be used. For example, you can make sure your grandchildren receive money when they reach the age of 18. You can also specify that the money in the trust be used for college tuition. In addition, trusts can be restricted to those beneficiaries who need help managing their money.
The first step in creating a trust is to contact a lawyer who specialises in trusts. There are many types of trusts available, so you need to choose an attorney who is familiar with them. Also, you should ask how much their fees are before hiring them. A basic revocable trust can cost a couple thousand dollars, so it’s best to do your research beforehand. Be sure to explain your goals and limitations to your attorney.
Revision of an estate plan
It’s important to regularly review your estate plan. Not doing so can be just as troublesome as not having one at all. Revision of an estate plan should be done every few years or when life events change and require changes. There are a few things you should keep in mind when revising your estate plan.
Revision is necessary if you have children or want to change your life’s circumstances. Your health may change, and your decisions about what to leave behind will change. It is important to update your plan regularly and make sure it reflects your values and goals. Get the help of a legal adviser. Choose estate planning by Bruce Legal.
