Wills and Trusts play a crucial role in planning an estate. If you hire a competent estate planning attorney, he or she will advise that you create a trust to lessen the difficulty that may arise when it’s time to transfer your asset. A trust also mitigate estate taxes which can be costly. Before we delve into what a will and a trust is, why don’t we fill you in on what it means to plan an estate?
Of course, you may have a little insight into what it means to plan an estate. Some people believe that planning an estate is all about writing a will that states who inherits a certain property of the deceased and it all ends there. Well, sorry to disappoint you if you thought the same way about estate planning. Actually, estate planning is more than drafting wills. Estate planning involves more that you even imagine.
If you are conversant with what an estate is, then you should know what it means to plan an estate. Estate planning is simply plans made in anticipation of one’s death. This plan revolves around ones asset which as we know will remain even after death. Estate plan are plan made to share and manage the assets of a deceased after his death or incapacitation.
Importance of Estate Planning
Estate planning boasts of numerous importance. It pays to plan your estate even when in the early stage of your life. Provided you are above the age of 18, you have the right to make plans regarding your estate. To plan your estate, you don’t need to be wealthy, all you need is to own a valuable asset and that’s all. Estate planning is for the poor and the rich.
Making an estate plan I a good way to cater for your loved ones and yourself as well, should you become incapacitated. You can view estate planning as a perfect way to plan for your future and the future of those you love.
If you die without an estate plan, your family and friends will fight for your estate. If not properly managed, the fight could result in damaged relationships, lawsuits or even worse, death. This is surely something you wouldn’t want which is why you shouldn’t wait till you start growing grey hair before you plan your estate. If you fail to plan your estate while alive and you eventually kick the bucket, your estate will be managed and shared based on the intestate law. This process can be stressful, difficult, and time-consuming.
A will is one of the most significant elements of estate planning. Without a will, an estate plan isn’t complete. This legal document is that which states the assets of the deceased, how each will be shared, including whom it will shared to.
Put simply, a will contains your wish on how your estate is to be shared. Some people believe that estate planning begins and ends with the drafting of wills, this is so not true. In fact, estate planning is more than writing wills.
In the will is the name of an executor. The executor could be anyone from a trusted friend to a relative, etc. The job of an estate executor is to ensure that the wish of the deceased concerning his assets are fulfilled. It is therefore safe to say that an estate executor acts on behalf of the estate owner. Other duties of an estate executor ranges from locating all unpaid debts and taxes of the decedent and making efforts to see that they are outrightly settled. As stated, he is also charged with managing the estate.
A trust is simply a legal media created by an estate owner and used to transfer assets to a trustee who then keeps them in a trust fund for a third party who is regarded as a beneficiary. There are several reasons why you need to create a trust and if you have a very good estate planning lawyer, he will advise that you make one to lessen the burden that your family and loved ones will have to go through after your demise.