19/11/2019 Finance makes the world a new place

Estate Planning Basics: Yes, You Do Have to Think About It

Estate Planning Basics: Yes, You Do Have to Think About It

Let’s face facts… No one desires to take into consideration their death. Depending on your age and current financial situation, your end of life plans may be the furthest thing from the mind. But take into consideration this.

If your life were to end today, what would you be forgetting for your family to deal with? Some individuals, unknowingly, leave behind a confusing and expensive mess because of their spouse and children. If you haven’t considered estate planning, here are a few key points to start you off on the right path.

First Things First: Avoid Probate

The first point we should stress is always that you need to avoid your assets tied up inside the probate process. In simplest terms, probate may be the court-supervised process of locating and distributing your assets after your death. This process includes paying one last bill and taxes, then distributing what’s left in your loved ones. Doesn’t sound that bad, right? Keep reading…

Cost – According to research conducted by A.A.R.P., the probate court can eat up anywhere from 6-10% of the total assets. What if your family doesn’t have the finances to obtain your assets beyond probate? More headaches, more stress.

Along with that fact, the economy, like the courts, will be in financial disaster. Talks of raising court filing fees to improve revenue appear over and over. Depending on the state you live in, current probate fees could cost up to $2,500 and may rise even higher inside upcoming years.

No Access to Funds – Probate will leave your family without access immediately to the of your finances. Many individuals falsely assume there is a simple estate and thus need not worry about a prolonged probate process. This can be a common misconception. For most estates, the probate process takes between …

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Estate Planning And Avoiding Extensive Taxation

Estate Planning And Avoiding Extensive Taxation

With a little help from an experienced, estate planning becomes less of a chore plus more of an opportunity. Without a will and a plan, every time a person passes away, he gets no say in how the money and assets are distributed. When you can find documents outlining how financial resources are to be spent and actions are consumed advance to arrange, an individual can avoid many common tax pitfalls. There are ways to decrease the tax burden and be sure that family members receive the maximum cost.

Lack of Plans:

Some people see estate planning being a total waste. Instead, they elect to spend the amount of money or give the bucks away. The result is that you can find no funds left being taxed each time a person drops dead. On the one hand, it is an easy way to enjoy the cash, have fun, and instantly really make a difference in the lives of family members. On the other hand, it’s impossible to learn how much time you live or how much money will probably be necessary to live. Spending all of it prematurely . could mean being destitute for that final many years of life.

To balance things out, some individuals tend to gift some money to individuals annually. If you can find enough money handy, this is simply not a terrible idea. In moderation, this might be a possibility for someone that wants to share his wealth with the household.

A Living Trust:

A living trust can be set up for married couples to ensure that they avoid some of the common taxes. This type of estate planning may be down having an attorney and really should be researched before coming into the agreement. In most cases, a couple needs to have at least …

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