Estate Planning: Purpose, Objectives, Trust, Wills, Importance, checklist

Estate Planning: Purpose, Objectives, Trust, Wills, Importance, checklist

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What Is Estate Planning & Meaning?

Estate planning helps to make plans for the transfer of your estate after death. Your estate is all the property that you have in your hand. It can include such as cash, clothes, jewelry, cars, houses, land, retirement, investment and savings accounts, etc.

What is the main purpose of estate planning

Estate planning purposes is putting your legal, financial and medical affairs according to their order. It may involve very big decisions as to who will be taking care of you during your lifetime period and what happens upon your death.

Objectives of Estate Planning

We’ve discussed the basic idea of a solid estate plan and how estate planning can help you in other articles, but there is more to it. A strategic estate plan will do more than just make things easier for the family when an individual passes and maximize the main assets that are passed on.

A comprehensive estate plan will provide such as

Asset as a Protection;

Provide protection to the individual and family. This protection extends to business interests, real assets and joint ownerships. Additionally, provisions such as a durable power of attorney or durable power of attorney for health care will ensure that the individual’s needs and desires are still met in case of incapacitation.

Balance

Help plan for a balance between the use of assets during lifetime and ensuring enough is left to take care of the family when the individual passes.

EP Basics

Estate Planning Trust

Estate Planning is to build trust that You can’t take it with you when you go.” While this familiar statement is true, you can and should do your best to control your assets from beyond the grave. If you are unable to do so, there may be obstacles or problems in the management of your estate. Those obstacles may get significantly reduce the benefits your heirs would otherwise enjoy.

A trust is a kind of fiduciary relationship in which you give another party authority to handle your main assets for the benefit of a third party, your beneficiaries A trust is another method of estate transfer. A trust is created for a variety of functions, and there are many types of trusts; overall, however, there are two categories: living and testamentary. A will is a kind of power that can be used to create a testamentary trust. You can also create a trust for the primary purpose of avoiding probate court, called a living revocable trust.

Estate Planning vs Wills

A will is a legally enforceable document stating how you want your affairs handled and assets distributed after you die. It is an important component of Estate planning.

If you have minor-aged children at home, consider a will that appoints guardianship of your children. If a guardian is not appointed at the time of death, your surviving family will have to seek help in a probate court to have a guardian appointed for your children. The person appointed may not be who you would have wanted to be entrusted with your kids. 

Importance of Estate Planning

Something else it is to be considered is how you will pass a portion of your estate to below 18 as a minor child through a will. A will is an important decision in the hands of the judge presiding over your estate transfer. Your testamentary will carry out your wishes from beyond the grave. A will also help you to give insight and direction over the handling of assets your beneficiaries will receive.

Checklist

Everyone needs some degree of estate planning. Estate plans need to be tailored to the needs of the individual. The following are some Estate Planning estate plan checklist will explain various types of E-state planning documents, and help you evaluate those that will be of value to you. Even if you decide to turn the matter over to an estate planning attorney, you should still basic idea and understanding of what is involved.

couple signing agreement Estate Planning
couple signing agreement
  • Cover Estate Planning Basics
  • Plan Your Asset Ownership
  • Consider A Living Trust
  • Determine Beneficiary Designations
  • Cover Your Debts With Insurance
  • Get A Last Will and Testament
  • Consider A Financial Power of Attorney
  • Consider A Health Care Power of Attorney
  • Get A Living Will
  • Leave Information for Executor and Statement of Desires

Forms

Although no one willing to likes to think about falling ill or passing away, it’s important to plan for it. Preparing proper a will allows you to make sure your money and property go to the people you want them to go to. It’s also very important to let your loved ones know your wishes if you are ever unable to communicate your wishes. The best process of E-state planning is the way to plan for death or incapacitation. FindLaw’s is the best section on Estate Planning Forms provides various forms to get the help you with E-state planning. In this section, you can find samples for various estate planning forms, such as a sample will, a sample health care power of attorney, and a sample living will.

There is also a helpful estate planning checklist and get a basic idea and prepare you for meeting with an E-state planning attorney.

Importance of estate planning in India

In India, there are generally family businesses that have always been an integral part of our economy. But in today’s era, the basic idea is a family businesses are facing challenges due to disputes among family members, which could lead to an effect in business. Disruption could be due to partition include mismatch of various ideologies, the death of a partner, etc. One of the most important challenges faced by family business is ensuring the successful transition of the enterprise to the one generation to the next generation.

Importances of the vehicles for effective estate planning are Wills and Trusts Will is the best and simplest form of estate planning. It is a legal document that comes into effect on the demise of an individual. It is the most best convenient way for you to ensure smooth transmission of your wealth to the beneficiaries as per your desired distribution. Drafting of Will is also the best opportunity to nominate the guardians for minor children. Will can be made only by individuals and has no legal validity until your demise. Writing a will is a form of simple and requires minimal effort and money.

 
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