Have you ever made an estate plan? If not, then you should understand it is the legal process of preparing your assets for your heirs in the event of your passing. This way there will be less fighting over your estate.
There’s a lot to consider in an estate plan and people frequently have questions about the process. The following are a few common questions about estate planning:
What is an executor of your estate?
Designating heirs isn’t enough to ensure your assets go to the right people. You have to designate someone to care for and protect your assets. This person should be trustworthy to do you and your heirs to upkeep your estate during the probate process.
What is probate?
Probate is the period of time in which your estate plan is evaluated and your assets are administered to your heirs. During this time, your estate plan will be reviewed to ensure authenticity. With a will in place, a probate court can determine how assets are to be distributed. However the process can be lengthy and heirs are often subjected to estate taxes, which is why many people create trusts.
What is a trust?
A trust is much like a will. Within it details how assets are distributed and to whom. Yet, a trust allows beneficiaries to circumvent probate and estate taxes. And, trustees can include specific detail as to how assets are distributed, such as limiting how many assets are given each month or year to an heir.
What is a power of attorney?
Last but not least, an estate plan includes a representative who has authority before a trustee passes away called a power of attorney. A power of attorney makes medical and financial decisions on behalf of the trustee if they are incapacitated. This may happen if the trustee develops a mental illness or suffers a catastrophic injury.
There’s a lot to consider when making an estate plan. If you’re wanting to make an estate plan, then you should understand your legal options.