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Estate planning is tricky under the best of circumstances, and even under normal circumstances it can be downright difficult to do correctly. One thing that often slips through our fingers and we fail to spend an adequate amount of attention on is the effect of debt on estate planning.

Most people think, “I’ll be dead, why would I care about the debt that remains!” Well that’s a valid point I guess, but if the people that come after you will have to deal with this then so should you have to deal with it too, in fact what’s the point of planning for anything in that case!

Consider this hypothetical situation; imagine that you have loaned your son $50,000 to start a business. Now imagine that you die. Not a lot of fun – sure – but roll with it here! What happens to that $50,000? Continue reading ‘How To Avoid Tax On Debts’ »

Estate planning is a fundamental part of life planning and requires executing legal documents to ensure beneficiaries receive intended inheritance gifts in the event of death. While few people jump for joy at the idea of planning their estate, it is important to at least implement basic elements to protect loved ones.

Minimum estate planning should consist of a last will and testament, durable power of attorney, and healthcare proxy. Individuals whose estates are valued higher than $100,000 might consider transferring inheritance assets into a trust.

Executing a last will is a simple process that does not require a lot of time. A will provides details of how assets should be distributed. Upon death, the will is submitted through probate court and becomes a matter of public record. Probate can be prolonged when individuals die intestate (without a will) and assets are distributed according to state probate laws. Continue reading ‘Estate Planning is Essential For Protecting Inheritance Assets’ »

Did you know that approximately 60% of American adults do not have a written estate plan? Estate planning is extremely important, but most adults do not fully understand what estate planning is and how it works. Adults also do not fully understand that without an estate plan, a judge, who does not know you, your family, or your wishes, will determine who gets your assets and who will care for your minor children.

What is estate planning?

Estate planning involves both planning for the possibility of mental incapacity and planning for death. It is one of the most important steps you can take to make sure your wishes regarding your assets and healthcare are honored, and that loved ones are provided for after you are gone. Though often overlooked or even put off, a comprehensive estate plan can answer a number of legal questions that often arise whenever anyone dies. Continue reading ‘What is Estate Planning?’ »

One of the most important elements of financial planning is to decide what will happen to your assets after your die. It’s even more important for the single person as opposed to married people. Married people can transfer unlimited wealth to a surviving spouse without incurring estate taxes. This option is not available to single people. Another danger for unmarried people is that they have no spouse to make medical, legal or financial decisions for them when they become incapacitated. That makes it even more imperative that single people set up a sound estate plan.

There are several ways in which a single person can set up a sound estate plan, but since estate laws vary from state to state, by far the smartest approach is to hire an attorney who specializes in estate planning. Some lawyers will charge by the hour, while others will do a basic estate plan for a fixed price. To save time, and possibly some money, you can purchase a software packages that will help you organize your assets and other information that the attorney will need to prepare your estate plan. Continue reading ‘Estate Planning For the Single Person’ »