Keep Your Money in the Family: Five Estate Planning Tips
One of the best reasons to create and maintain an up-to-date estate plan is to ensure your loved ones will be the recipients of your estate–no one else. However, estate planning can be complicated and a difficult task to undertake.
If you’re considering starting your estate planning but don’t know where to start, then this is the guide for you. Read on to find out helpful tips on how to guarantee your money stays in your family.
Drafting a Will
According to the 2020 Estate Planning and Wills Study, roughly 32% of Americans claim to have a will. This number is shockingly low. Too many Americans are living their lives unprepared and putting their families’ futures at risk.
If you die without a will in place, your estate will be handled in probate court, as an “intestate estate.” This can be a tedious and painful process for your family because they have little to no say about what happens to your estate. Drafting a will is the best way for you to ensure that your loved ones are cared for once you're gone and that your money doesn’t get in the wrong hands.
If you need help drafting a will, find a professional estate attorney who can help you make sure you have an effective and thorough plan in place.
Establishing a Trust
A trust can be an alternative of sorts to a will or can work alongside a will. People with trusts may have large estates, minor children, family members with special needs, or are worried their heirs won’t be wise with their money. Trusts can also function as significant tax benefits for their draftees. Money in some trusts cannot be subject to estate taxes because the money is no longer yours, it’s the trusts.
Trusts are also a great way for estate owners to obtain privacy in the estate distribution process. Trusts aren’t subject to probate, so your possessions won’t be announced in a public court. Just as with drafting a will, however, you’ll want the help of an experienced attorney when establishing a trust.
Double Check Any Named Beneficiaries
Accounts like life insurance policies and retirement funds are typically not handled through a will. These particular accounts should have a specific beneficiary named. If there is no such named beneficiary, however, these accounts may be settled in probate court.
Named beneficiaries will supersede anything stated in your will. This is why it’s important to regularly check and update your named beneficiaries after every major life change—like childbirth, divorce, or marriage.
Getting the Help You Need for Estate Planning
Estate planning can be a stressful experience, but it doesn’t have to be. At Waters Sullivan, we are experts in getting estate planning solutions for our clients. From will planning to building a trust, to representation, our firm covers it all. Contact Waters Sullivan today, and see why more and more people are entrusting us with the protection of their estates and their families' futures.