Anyone with assets of any kind, including real estate, does have an estate. Estate planning entails the process of deciding what might happen to your belongings or possessions after your death or becoming unable to care for yourself.
Peace of mind is the main benefit of establishing an estate plan. You may decide or have the rights to who receives ownership of property or mortgage and make sure the loved ones are taken care of after you die by making an estate plan.
You should take into account all of the assets and funds when deciding which ones should be included in your estate plan.
The assets might be anything wild like gold or silver bars, whether they are digital item, kept in printed form, or are stocks and bonds stashed away in a drawer. There might be a wide number of assets. However, any asset must be taken care of.
The information about fundamental properties and processes for drafting an estate plan is covered throughout in this content and article, along with its examples and the assets you should think about.
Estate planning: what is it?
Establishing who could inherit your assets in the course of death or disability is the process of estate planning. One objective of ensuring that assets are allocated to beneficiaries and heirs is important, in a way that regulates and gets rid of gift taxes, estate taxes, and other tax implications. When doing this, an attorney is typically used.
What assets should be considered when planning your estate?
Preparing a estate plan should consider and take “any and all” assets into account.
Naturally, each individual estate will include a variety of items. However, generally speaking, you must guarantee that the following list of asset classes is recorded:
- Real estate, such as your house or an area of land
- Cash, credit cards, bank accounts (checking accounts, savings accounts), safety inventory deposit box boxes
- Stock funds, assets, and bonds
- Accounts for investments or brokerage services
- 401(k), IRA retirement accounts, retirement plans, and pensions
- Life insurance policies
- Collectibles and digital assets (antiques, art, etc.)
- Other personal or ownership property, mortgage, including vehicles, cars and furniture.
Basic Checklist of Estate Planning
When coming up with the optimal strategy for your circumstances, it’s critical to take various factors into account.
Make a list of everything you possess. An inventory of your assets is a necessary first step in any preparation for what happens. In addition, to order, track and select what to divide and to whom it takes place. Give your mortgages plenty of thought, and consider the following:
- Your house, land and any other real estate properties you have
- furniture for the home
- Accessories, jewelry, and garments
- Any collectibles like art and antiques
- money and cash in banks
- Brokerage accounts
- Pensions, stocks, bonds, life insurance, and retirement accounts
Last will and testament. Your final intentions are spelled out in a will, which is a legal document. It may touch on a variety of topics, such as:
- How your assets should be divided after your death
- Designating an executor (more about it below)
- Designating guardianship for your child, if necessary
- Ensuring the welfare of your pets
- Paying off any outstanding bills, taxes, and debts (includes estate taxes assuming your estate is sufficiently large)
- Funeral arrangement
Name the executor. An executor would be the person in charge of gathering and allocating a deceased person’s assets in accordance with the deceased’s will. The will designates the executor. If the dead does not name an executor, then probate court will do so. The executor starts the probate procedure and speaks on behalf of the estate in court. It’s a great idea to specify a backup executor in your will who will serve in that capacity in case your first choice is unable to or declines to do so.
Living trust. A living trust has the advantage of avoiding probate for its assets. The trustee, the person who establishes the trust, is free to transfer any assets into the trust that they desire to be transferred to its beneficiaries after their death. In a living trust that is revocable, the grantor is free to make any changes they see fit. An irrevocable trust cannot be amended once it has been established. Trusts come in a variety of forms, such as marital, life insurance, as well as real estate trusts. You can learn more about the best choices for your estate from an estate planning attorney.
Living will. A living will, often referred to as a health care directive, details the type of medical treatment you will then receive and also how end-of-life events must be handled if you are unable to make medical decisions for yourself. The health care proxy or power of attorney is a similar idea. This is a person you choose to make choices about your health care system on your behalf.
Designate a guardian for children under 18. You can choose a guardian to raise your minor children and look out on their behalf in the event that you die before they reach adulthood if you have children under the age of 18.
Organize your digital assets
While planning your affairs, social media updates may not be the most important thing on your mind, but in a time when everyone has an online presence, it’s a great idea to take a seat and establish a list over all your digital passwords and logins for all accounts. Consider useful site and apps from several categories, such as:
- Social media and messaging accounts: Instagram, Twitter, Pinterest, Linkedin, and Facebook accounts
- PayPal, Wire transfer, and Cash App are three payment and bank transfer options.
Give a trusted individual access to your digital assets following your death so they can follow your instructions after you have created a comprehensive list. Avoiding including sensitive data like passwords within your will is a smart idea since it becomes accessible after your death. Rather, ensure that your administrator is aware of where to locate your list.
Account beneficiary designations. You can choose beneficiaries for a variety of accounts, such as bank accounts, savings accounts, retirement account and retirement plans. These accounts are referred to as “transferable on death” (TOD) or “payable on death” (POD) accounts. When you designate beneficiaries on an account, you can sidestep the probate process by paying out or transferring the account to a beneficiary after your death. The designated beneficiaries may be:
- Surviving Spouse
Lasting power of attorney. Consider appointing an power of attorney over your costs and finances in addition to your medical powers of attorney (described above). If you become incapacitated, this person will be given the power to handle duties regarding your finances.
Long-term care and life insurance. To assist in paying off debts or leaving anything to dependents after your death, you might want to think about purchasing a life insurance policy.
Estate planning strategies
While a majority of us don’t appreciate discussing end-of-life matters involving wills and estates, additionally, it is important to get past these mental block cases and regard estate preparation as an integral element of your entire financial plan benefits. When it comes down to it, this procedure is all about ensuring that your investments and money are transferred to either family as well as the beneficiaries in the most efficient manner feasible.
Family units are becoming more complex in many circumstances, which makes estate planning more crucial than ever. Long-term care planning has gained importance as a result of living longer than before.
In accordance with your needs, objectives, and the circumstances of your family, your estate plan must be customized. While basic methods can be a great starting point for a customized strategy, it is recommended that you get professional advice to ensure that you have covered all the essentials and selected the best solutions for both you and your family.
Here are 6 examples of estate planning strategies which can assist you in securing your loved ones and assets. Wills, taxes, superannuation, and other pertinent subjects will be covered.
- Consider wealth management first.
Examining your total wealth management and developing a strategy that will assist you in assembling the resources required to fulfill your objectives is one way to approach estate planning.
Many individuals find that they need to make some modifications once they sit down and discuss their lifestyle goals for retirement, including provisions in later years, since estate planning necessitates thorough recording of all your assets. To define objectives, come up with viable solutions, and monitor the performance of your investments, use the greatest wealth management tools available today.
- Transition to Retirement
Recognize utilizing Transition towards Retirement to safeguard your assets if you have attained the preservation age and remain employed. Alternatively, you might work fewer hours through working part-time plus begin to get a regular superannuation income stream.
Transition to Retirement may be something you want to include in your long-term finances if you haven’t met your preservation age yet. The total tax payable can be reduced by using a TTR pension.
- Obtain the Appropriate Level of Insurance
Another of the best ways to maintain your wealth is to protect your family as well as your estate from unanticipated disasters, but with the numerous insurance products available nowadays, it can be challenging to tell if your insurance is being used to its full potential.
Overspending on insurance products that don’t provide the protection you require can deplete your savings and leave you defenseless. Think strategically about your needs rather than trying to overinsure. Ask for guidance on the appropriate protection and policies for you as well as your family.
- Secure Your Assets & Lower Risk
You need a strategy for securing your assets and lowering your risk value because life can be unpredictable. Although it is impossible to foretell what all your financial future will bring, there are various ways to safeguard your assets and income statements.
You may greatly reduce the risk and help yourself achieve your goals, for example, by structuring your investment and retirement accounts.
- Make a business exit plan.
You must consider how you’re going to eventually exit your company or businesses if you manage one. What you can leave in the hands of both family and beneficiaries will depend greatly on how you choose a track to pass on.
You can create a plan describing your successor, how inheritance risks will be handled, and how money will function both during and after the transfer with the aid of business succession planning. You can resolve any legal concerns that have an impact on your assets and also what you ultimately leave to your family with the help of this planning.
- Learn about the “death taxes” imposed by the state and federal governments.
Even though only a fairly small (and wealthy) portion of the population is affected by the government estate tax, it is still a good idea to become familiar with it. This is especially true given the rules may soon change.
The federal government levies a tax on the value of a deceased person’s estate. According to the IRAs, the estate consists of all the money, vehicles, investments, businesses, and other possessions that the deceased person had at the time of their death or funeral. The estate, not the beneficiaries, is responsible for paying the tax.
Things to Consider When Estate Planning
A thoughtful estate strategy is an important component of retirement preparation. Do you feel confident in your estate plan? The five suggestions below will assist you in identifying any designation gaps throughout your estate planning strategy.
- Is My Will Updated?
Keeping your Will updated is among the most straightforward estate planning requirements. Anyone who is older than 18 and owns any kind of property ought to draft a will. Making a will is relatively inexpensive, but it can have a significant impact on how your assets are divided after your death or funeral.
Without a will, state laws would then decide how you distribute your money and other possessions. Legal challenges are frequently brought by unhappy or alienated family members or even other interested parties in this situation. As you may guess, circumstances like this are time-consuming, challenging, and expensive. It is best to make a Will in order to avoid these issues.
You can specify who will receive your assets, including cash, investments, real estate, homes, a vehicle, jewelry, works of art, as well as other valuables, by making a will. You can communicate your intentions for your funeral, burial, and cremation to your loved ones using your will.
- Have I chosen beneficiaries for my insurance and investment accounts?
You are able to choose beneficiaries to receive the funds after your death in your insurance plans, retirement accounts, and other investment accounts. You should also designate a Reversionary Beneficiary or Death Nomination on your super account, if you haven’t previously. This document will ensure that any super account is handled as you specify, even while it is not automatically sent to your estate when being dispersed in accordance with the directions you provide in your will.
- Have I Named Legal Guardianship For My Spouses and children?
One of most crucial situations you can take when you prepare your estate may be this. What might happen to the people who depend on you if you passed away tomorrow? Do you currently have an established plan for them that provides everything for their development and education, as well as a guardian representative who will take up responsibilities to guide and take care of them?
- Do I Need to Establish a Testamentary Trust?
A testamentary trust, which is a trust established in accordance with your Will, can help you distribute your estate more tax efficiently and lower your chance of having your Will contested. Elective trusts, special disability trusts, or others trusts exist; the type of trust that’s appropriate for you may depend on your objectives, your family status, and other variables.
If you’ve got dependents under the age of 18, trusts can be extremely helpful. It appoints a trustee to look over your beneficiaries’ inheritances up until the point at which you want the money to be distributed to them. Trusts may be risky, though, particularly if other parties file lawsuits against the trust.
- Have I had my estate plan reviewed by professionals?
Your estate planning can be improved and your estate can be protected with the help of a skilled wealth management advisor or advisors.
What will occur if I pass away without a will?
Your estate will be divided in accordance with your state’s intestate rules if you pass away without leaving a will.
Intestate laws, also referred to as legislation of descent distribution, define the line of succession. Although state rules vary, intestate succession often goes from the nearest to farthest relatives.
For instance, if there is a surviving spouse, the succession would commence with them, and then move on to biological and adoptive children, surviving parents, grandchildren, siblings, nephews and nieces, aunts, and uncles.
Your state’s succession order can be different. This will depend on the law as well as the members of your family who will be left behind.
Who Should Have an Estate Plan?
An estate plan might be advantageous for everyone. Future planning should not be considered a privilege reserved for the wealthy. Everybody must make the effort to make arrangements that will prevent their loved ones from having to handle their final affairs in a complicated way.
Your estate plan may specify how your family should act to ensure that you receive the medical care you desire to receive in the event that you become disabled. If you have any live dependents, you can appoint guardianship to take care of them through your estate plan, removing any doubt about their welfare in the event that you are unable to do so yourself.
An estate plan might assist you in making arrangements if you have children who you want to protect after your physical incapacitation or death.
Should I Prepare an Estate Plan?
Although establishing an estate plan isn’t really required, doing so is highly sensible.
As said previously, if you don’t have any form of estate plan, your state’s intestate laws will determine how your assets are divided. Your assets may end up being dispersed in ways as a result of this that you would not want to occur.
If you don’t have an estate plan, you have no control over how your assets are divided or how the surviving family members will be taken care of.
An estate plan not only gives you control over your estate but also significantly lessens the stress on your remaining family members during the distribution of your wealth.
Your loved ones will have peace of mind knowing your desires are being carried out thanks to an estate plan, which explains exactly how you liked things to proceed. Additionally, it offers precise instructions that can help prevent family disputes and probate litigation.
How Do You Create an Estate Plan?
Making an estate plan necessitates thoughtful consideration and advice from experts who focus on helping people with issues linked to estate planning. The best person to provide you with advice on estate planning would be an attorney who specializes in estates disputes. The Law Office of Roger A. Giuliani can assist if you reside in Las Vegas and require estate planning services.
Typical Estate Planning Documents
Important components of estate planning include the following documents. Each document symbolizes an important aspect of your final intentions, and all of these documents taken together constitute a thorough estate plan.
- Guardianship Documents – A document that specifies your desires for who should look after your children or even other dependents in the event that you are incapacitated or face death.
- Will – A formal statement of your final wishes regarding your estate.
- Trust – A legally binding arrangement between three parties where the first party (yourself) grants the second party (the appointed trustee, it could be friends or others) the authority to hold and ultimately distribute possession of property and assets on your behalf towards the third person (your beneficiaries).
- Financial Power of Attorney (POA)- An legal document authorizing delegating control of your finances and transactions to some other else.
- Durable Power of Attorney (POA)- This type of financial power of attorney gives someone the authority to manage your non-medical affairs. Durable here refers to the fact that POA is still in effect even if you are incapacitated.
- HIPAA Authorization – With the help of this document, you can grant access to personal medical records to a third party.
Estate Tax Planning
The situation of planning for taxes on estates and other types of property should be a part of estate planning. Eventually, your plan must allow you to meet tax obligations while leaving potential beneficiaries far more you possibly can.
Your estate planning can handle the following tax types:
- Estate taxes – Any local government, state law, and federal levies deducted from your estate after your funeral.
- Inheritance taxes – Taxes owed by recipients upon receiving inherited property.
- Gift taxes – Taxes that are imposed on gifts that have been given beyond a specified threshold and are paid for by the creditors.
You can prevent probate and save your estate for the same purposes of paying an expensive amount of taxes by being aware of the tax processes that are involved in estate planning.
Questions to Ask a Lawyer for Estate Planning
If you’re attempting to decide what assets to include within your estate plan, think about seeing an estate planning lawyer.
Making an asset inventory and creating legal paperwork are just two steps in the estate planning process that an attorney can help you with.
Thankfully, a lot of lawyers offer the free consultation category to prospective clients. You can seek legal counsel at these consultations for opinions and assess whether the lawyer is a good fit in front of your needs.
Ask pertinent questions to make the most of a consultation, like:
- What choices do you have for cost billing and attorney fees?
- What documents do I require for estate planning?
- Do I need to create a trust?
- What should I take into account while choosing an executor or administrator?
- How should a durable power of attorney be set up?
Plan for Your Future with The Law Office of Roger A. Giuliani
If you don’t have confidence and are having confusion or unsure of what is involved in the estate planning process, we comprehend how difficult it can be. The skilled attorneys at The Law Office of Roger A. Giuliani take great delight in advising clients who require tips, instruction, directions and assistance regarding estate planning-related matters. To ensure your sense of lifetime security regarding your final affairs issue, we would love to help you and let you experience confidently planning for the future and offer legal support service.
For more information or any questions, don’t hesitate to schedule a consultation with us, our lawyer will be able to help you on any matter or reason you want to know regarding estate planning or probate or call us at (702) 388-9800.
For more information on how https://probateattorneyvegas.com/ can help you with What Assets Should Be Considered When Planning Your Estate, please contact us at (702) 388-9800, or visit us here:
The Law Office of Roger A. Giuliani, P.C.
500 N Rainbow Blvd #300, Las Vegas, NV 89107