Archive For The “Legal” Category

7 Common Mistakes of Estate Planning

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7 Common Mistakes of Estate Planning

Even though planning your estate isn’t an enjoyable job it’s necessary so that you can efficiently and successfully transfer all of your assets to those you leave behind.  With a bit of careful planning, your heirs can avoid having to pay estate taxes and federal taxes on your assets. As well, a well planned estate avoids confusion for your loved ones.   Still, with all the advantages of estate planning, many people make a great many mistakes in the process.  The most common mistake when it comes to estate planning is not getting around to doing it at all. Make sure that you take the time to plan at least the financial portion of your estate so that you leave your loved ones behind with some amount of security. The following seven mistakes often put families into great difficulty after a loved one’s passing.   Don’t fall into the trap of thinking that estate planning is just for the rich.  This is completely false as planning your estate is essential for anyone who has any amount of assets to leave behind.  Many people don’t realize that their estate is as large as it really is, especially when they fail to take into account the assets from their home.   Remember to update your will and to review it at least once every two years.  Factors that can change information about your beneficiaries include deaths, divorce, birth, and adoption.  As your family structure changes so does the change in your assets and who you want to leave them to.   Don’t assume that taxes paid on your assets are set in stone.  Talk to your financial planner about ways that your beneficiaries can avoid paying taxes on your assets.  There are several strategies for tax planning so that you can minimize taxes or avoid them altogether.   All of your financial papers should be in order so that it’s easy for someone to find them.  Make sure that one of your loved ones has information on where to find the papers necessary for planning after your death.   Don’t leave everything to your partner.  When you leave all of your assets to your spouse you are in reality sacrificing their portion of the benefit.  You’ll get an estate tax credit but will forfeit part of this if your spouse is your only beneficiary.   Ensure that your children are well planned for.  Many people take a lot of time deciding what to do with their assets and forget that they need to appoint guardianship for their children.  There are many details to take into consideration when it comes to guardianship.  If you don’t have a financial advisor, get one. Financial Planners and Advisors are trained intimately in these matters and can provide asset protection well above whatever fees they may charge. If you need help selecting the right financial advisor, get the Financial Advisor Report. The above mistakes are common when people are planning their estate.  Take the time to plan…

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The Basics Of Estate Planning

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The Basics Of Estate Planning

  Estate Planning may be a word that is encountered by many citizens especially the elderly. What is Estate Planning? What benefits does it provide to people?   Estate Planning is a method of arranging and considering alternatives that will satisfy specific wishes and goals to prepare for things that may happen to a person and the people he finds special to him. Estate Planning includes organizing properties and not just putting them in a simple Will. It also lessens the taxes and fees that may possibly be charged to these properties. Estate Planning also includes contingency preparation to ensure that ones wishes regarding health care and medications will be followed.   An estate plan may be described as good if it financially coordinates with the future of the home, business, investments, insurance and other benefits if ever the person becomes sick or will pass away. A good estate plan also sets directions to bring about personal wishes regarding health care in preparation for the when the person becomes disabled.   It is very important to identify the real definition of the term “estate” before someone can really perform estate planning. Estate means all the properties a person owns or has control of. This is regardless whether if the property is solely named after him or is in managed in a partnership. This may include real properties, accounts, bonds and stocks, cash, buildings and establishments, jewelry, collections, all types of businesses and even retirement benefits.   Typically, those who really need to have an estate plan are parents who have minor children, people who have valuable properties and have sentimental values for them, and also people who are concerned about their medications and health care. However, people can still acquire an estate plan whether they have these categories or not. As long as they have all the things that are covered by an estate plan, then they can avail of it. While a person is alive, it is important to prepare an estate plan and at the same time implement it. This is the perfect time for a person to perform and have legal capacity to come up with a contract. There may be challenges that could occur if an estate plan is implemented when a person is already disabled. Others may judge the lack of capacity and the person may be prone to fraud, abuse and coercion. Estate Plans may include wills, power of attorney for health care, living wills, living trusts and limited partnerships. When entering into a contract, it is very important to make use of the services of a lawyer. Lawyers are the only certified people who practice these fields. They are also the only ones who can supply a person with all the legal requirements and advice needed in the estate plan. An attorney will be able to answer legal questions regarding the estate and they will also be able prepare the person on the cost of the estate plan and other finances the come…

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