Estate Planning | The Do’s And Dont’s Of Estate Planning
Estate Planning | Estate planning is something that no one wants to think of because of the grim implications. While it may not be enjoyable to consider all of the possibilities, planning ahead is important in the event that the worst comes to pass. Wills and life insurance plans must be carefully allocated so that families do not fight following the death of a loved one. At the very least, estate planning needs to be done to protect families from financial instability following a traumatic event.
The Things to Do When Planning an Estate
-Always make a will because it helps to show how the property needs to be distributed. Without a will, the courts end up determining where the money goes.
– Donate land that is not going to be given to a family member to a charity for income tax deductions and lower estate taxes.
– Make a flexible plan that still works when estate laws change.
– Create a trust that protects the interests of the family and holds property for a beneficiary.
– Review the will regularly to ensure that it is still in line with the current situation and the family’s needs.
– Have a lawyer prepare the will so that there are no loopholes or arguments later on.
– Remember to plan for durable powers because illnesses and injuries can happen to anyone.
The Things Not to Do When Planning an Estate
– Do not assume that a farm or small business will enjoy extra estate tax benefits because these were removed in 2004.
– Do not forget to make a backup plan because it is possible that the owner of the estate will outlive the beneficiary.
– Do not expect estate taxes to remain at a set rate forever.
– Do not change the plan or cancel life insurance without talking to a lawyer first.
– Do not assume that children or beneficiaries will handle the situation correctly.
– Do not assume that beneficiaries will accept all of the decisions and inheritance details of the will.
– Do not expect a spouse to always be around to handle estate planning because an accident can happen