In legal terms, estate refers to your total net worth, which includes your entitlements and rights to any type of property. This is an important issue to periodically evaluate, particularly with regard to death. In simple terms, it is crucial for you to understand and take action with regard to estate planning. Basically, estate planning involves arranging for the disposal and general management of your estate during your lifetime and after your death. Here are crucial strategies to help you achieve the best estate planning results.
Prepare a Valid Will
The most apparent method to ensure that your property is managed as you wish is the preparation of a will. This is a legal document which will allow you to officially state how you would like your estate distributed after your departure. Without a valid will, the pertinent property will be distributed in a probate court. This means that some of your dependents might not get a share of the estate. Moreover, the total costs associated with property distribution in court are high. When making a will, it is advisable to engage a qualified attorney for the process. They will help you ensure that the document is valid and make certain that the details are not subject to unfortunate misinterpretations.
Establish a Trust
If you are concerned about the wastage of money or you have a large estate, you should consider setting up a trust for your potential beneficiaries. A trust can be defined as the situation where certain property is held by one entity on behalf of another party. Simply speaking, when you create a trust, you will appoint a trustee to administer the estate. Trusts are favourable because they reduce your long-term estate costs. This can be attributed to the potential tax benefits associated with this strategy. Basically, once you transfer the money to a permanent trust, it will no longer belong to you. It will owned by the trust itself, so the funds will be exempt from estate taxes. A trust will ensure that your beneficiaries receive the best financial results.
Know Your Beneficiaries
You should note that all your assets cannot be disbursed through your will and testament. Instead, you should name your desired beneficiary when establishing that particular asset. For example, this often applies for life insurance policies and retirement funds. If there is no beneficiary, the funds will be distributed in court. Therefore, choose your beneficiary for the property and review periodically for the best results, particularly after major life changes or events.Share
22 March 2017
Hello, my name is Sandra. I live with my two children in Eastern Australia. I have recently come through a very difficult divorce. My ex-partner used to drink too much and he wasn't a very good husband or father. The final straw was when I discovered he was having an affair. I filed for divorce the same day. I knew that getting divorced would be difficult but I didn't realise just how difficult. My husband did all he could to make it hard for me and the kids. Thankfully, I found a fantastic family lawyer who helped me through the entire process. I won custody of the kids and my husband has been asked to pay child support. I decided to start this blog to help others who are going through a divorce.