Estate preparation is the process of organizing and setting your affairs in order when it comes to death, incapacity or disability. What comprises someone’s estate is everything they own and everything that they want to achieve in preparing for their ultimate death, impairment or incapacity. Everyone has their own estate: some are big, some are little, some are specific, and some are general. For many people, their estate comprises their personal property, their cash, their investments, their real estate and their personal property.
THE NEED AND BENEFITS OF ESTATE PLANNING
Since everyone has an estate, everybody must plan one. In regards to who does it benefit the most, the general concept is everyone thinks that the rich individuals truly benefit the most but the reality is that anybody who has a house, anybody who has some monetary assets like savings account or financial investments, any person that has a family with children, they all really take advantage of estate planning since you wish to safeguard yourself, you wish to protect your possessions and you want to protect your family. That is truly why people do estate planning; to safeguard themselves, their family and their possessions.
THE COMMON MISCONCEPTIONS THAT PEOPLE HAVE ABOUT ESTATE PLANNING
The greatest one is that estate preparation is just for abundant individuals because individuals believe that they are the only ones that really take advantage of it. The truth is everybody take advantage of estate preparation since if you do not effectively plan your estate, then the state in which you reside is getting involved in the management of your affairs. Most individuals do not recognize that in California, if you own a home, then you’re going to need to do your estate preparation. You are going to need to establish a revocable living trust because if you don’t have a trust, when you pass away, all your assets are going to go into the probate system and your household is going to be stuck in the court system for a year at a minimum.
THE FACTORS THAT CONTRIBUTE TO A WELL-DESIGNED ESTATE PLAN
One aspect that adds to a well-designed estate strategy is selecting the ideal people to manage the appropriate task obligations. For instance, you want people with a great monetary background and who are credible to be managing your monetary estate. You want individuals that are competent to manage emotional and medical choices to be the ones deciding what occurs to you if you become incapacitated or handicapped, who is going to make life planning decisions for you such as where you are going to live and who is going to take physically look after you. The other aspects that are associated with a great estate strategy would be just planning out who you wish to receive your possessions, when do you want them to receive them and how are they going to be managed while young people are growing up so that the assets are not abused or lost or put in jeopardy. Many clearly a well-designed estate strategy will optimize the benefit to your household and keep your household and your liked ones from the probate system if everything is established effectively.
WHAT IS A WILL AND HOW DOES IT WORK?
A Last Will and Testament is essentially a set of directions that determine exactly what happens if you pass away. It says who you want to be the administrator your will – that’s the person who will administer your estate. The will then says who gets your assets in case you pass away. It can say how and under exactly what terms they get the possessions. Perhaps most notably, a will chooses guardians for your small kids. Exactly what a will does is offer some organization of your affairs to be managed through the court system. What a will does not do is it does not avoid the probate system so that all your affairs are going to be put in front of a judge and topic to court’s analysis. Sadly, that means that your affairs end up being public record which many people do not actually like all quite. A will does not keep you from the probate system. There is a huge misunderstanding that if you have a will, your affairs will not need to go through probate but that is just not real. The truth is that a will is really a notepad signed by a departed individual. The only value that the will has is when a judge indications a court order saying that the will is valid and this is how the estate assets are to be handled and distributed. So up until a judge signs off on a court order such as that, the will itself has no value. In terms of how does someone make a will, well there are people that have actually composed their own wills in handwritten kind and after that have it experienced by a few people. The majority of people have an attorney draft a will for them making sure that it’s done property, that it says exactly what it needs to say, which it’s performed properly so that it can not be challenged in court. Sources: I would like to thank Steven F. Blissthe Temecula Estate Planning Attorney for providing valuable information on this subject, hiss address: 41593 Winchester Rd #200, Temecula, CA 92590, United States. You can Also Search more about his Law Firm by Clicking Here. Trust and Estates on Lawyers.com HERE & WikiPedia on Estate Planning Here