Florida Probate Attorney

Estate Planning offers Peace of Mind for the Bereaved

Posted on 03. May, 2011 by Admin in Probate Law

Estate planning is important to make sure the assets of a person are properly dealt with after their passing. The process involves a will, power of attorney, a beneficiary, gifts and property ownership among other things. It is necessary to take care of these things while living, so the bereaved family will not have the burden of too many details and everything will be transferred and overseen properly when the person has passed on. There are many things to consider depending on the size of the estate, but these are five basic tips for estate planning.

The Will Should be very Specific

First of all, a will should designate a beneficiary, otherwise the state assume the role, of which will take time and may not result in the best distribution of assets. Children, even from a prior marriage, should be specifically designated to receive assets or be excluded. In many states, a living spouse will receive one third of the assets.

Secondly, it would simplify the estate planning to give away assets before death. They can be held in joint tenancy or ownership can be transferred. It is possible to gift up to $13,000 per year to an unlimited number of people or pay expenses directly to an educational or medical institution without paying federal gift tax.

Designated beneficiaries on life insurance and retirement accounts should be kept current, so they do not become part of the will. This should be reviewed and changed for major life changes such as moving to another state where the laws may differ or remarriage.

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Consider a living will. This will cover specific final arrangements and medical options for situations where the dying person is not able to give instructions.

Knowledge of Assets

Every year a Net-Worth Statement should be filled out to have a detailed list of assets. Assets include retirement savings, investments, real estate, business interests and insurance policies.

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The executor of the will is responsible for paying off debts and taxes and distributing what is left according to the directives of the will. All financial records, property deeds and computer passwords should be in a single secure location so they are easy find.

Understand Estate Taxes

There are estate taxes as well as inheritance taxes in some states. Many of these taxes can be avoided by careful planning. Some deductions are funeral expenses, charitable gifts, debt and the cost of settling the estate. A financial adviser can suggest how to defer or decrease estate taxes.

It will help the family after the death of a loved one if they understand the contents of his or her will. This could be discussed with them earlier so any possible conflict later will be minimized.

For more information about Estate Planning queries contact your nearest Lawyer or contact New York Estate Planning Lawyer

This information is intended to introduce estate planning to those who have not considered it and is not intended to be legal advice.

Tags: Estate Planning Law, Estate Planning Lawyers