If you are the owner of real estate and other assets, it is reasonable that you would be worried about being able to accumulate, as well as dispose of, estates in the best possible manner. For this, you will need to consider doing your estate planning very seriously to ensure that it includes doing all that is required to get the greatest amount of your estate to pass over to your beneficiaries. At the same time, you need to think how to not cause your beneficiaries to pay too much by way of taxes and how to avoid and even minimize the probate. In addition, you will also need to consider other goals such as designating who will be the guardian of minor children and how to plan for eventualities such as becoming incapacitated.<br>
There are a number of estate planning tools that you may need to use of which the will is a prime example and, in addition, there are also different trusts and beneficiary designations that are part of proper estate planning. Also, you need to consider powers of appointment and different types of ownership of property including joint tenancy, tenancy in common and by entirety, gifting as well as power of attorney, among other concerns.<br>
Of course, you need to provide the best possible protection for your property and the well being of your beneficiaries. Therefore, proper estate planning requires creating a living will, which is essential for future security though it must be understood that a living will is not the same as a durable medical power of attorney. The living will controls decisions that are to be made when you are nearing the end of your life, while the durable medical power of attorney gives the authority to make decisions to another person, such as a close friend or family member. Such decisions last only till the time you die.<br>
The major function of estate planning is basically making decisions and organizing your estate. You should thus ensure making and executing a will in which you need to direct what course is to be taken to dispose of your estate once you have passed away, when, and where you want the assets to be transferred.<br>
You may also include forming revocable living trusts, which become more useful when you are the owner of various assets and real estate. This, in turn, may require having a new deed or title created, and the revocable living trust also helps to avoid probate and lowers costs.<br>
Other than your will and making revocable living trusts, you should also consider having health care directives made that will enable your heirs to understand what you wish as far as end of life care goes and what needs to be done to your assets.<br>
Furthermore, naming a beneficiary to legal documents will help in avoiding probate. Examples of naming beneficiaries include your bank accounts, life insurance, stock brokerage accounts, and annuities.<br>
Also, proper estate planning requires that you also calculate your estate taxes and probate costs properly because most estates become liable for incurring payment of death taxes, which may cause for some part of your estate to be liquidated just to pay off such liabilities. Thus, knowing what potential liabilities could face your beneficiaries will help you plan your estate a lot better.
About the Author:
Palumbo & Associates, P.C. is a full service boutique law firm which focuses its practice on giving high quality, cost effective litigation representation to its clients in both state and federal court. These New York attorneys treat their clients as what they are, people and not simply “case files.” Whether you’ve been arrested and require criminal defense services, received traffic tickets, have been injured in an accident, or find yourself in need of an estate or matrimonial attorney, the staff at Palumbo & Associates, P.C. stands ready to advocate on your behalf.
Thu, 06 Mar 2008 15:43:49 - 100%
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