Your estate planning attorney is a competent and knowledgeable professional who can help you create a solid estate plan in a timely manner. But you can hinder your attorney’s job if you do not do your part in the estate planning process. Write Down What You Want If you are already cognizant of some basic aspects of estate planning before you meet with an attorney, write down what you want out of your plan. Make a list of your beneficiaries and include a preliminary idea of what you would … [Read more...] about How to Help Your Estate Planning Attorney Help You
Estate Planning
Does Your Estate Have Enough Liquidity?
Estate liquidity is the amount of cash and cash equivalents available in your estate to pay creditors and other bills that may arise after you pass away. Many estates are heavy on illiquid assets like real estate, and too light on liquid assets. This means that when the cash runs out, illiquid assets have to be sold in order to pay the bills and settle the estate. Forced sales always put the estate at a disadvantage. For this reason, it’s important to plan for sufficient liquidity. One way to … [Read more...] about Does Your Estate Have Enough Liquidity?
Estate Planning for New Parents
If you’ve just had a baby, you know how busy and overwhelming life can be. Amid all the excitement and the adjustments you’re making, it’s important to take some time to think about your estate plan, and how you’d like to provide for your child in the event that you pass away. Especially at this time in your life, planning for this unfortunate circumstance is the last thing you’re likely to want to think about; however, this is an essential part of protecting and providing for your … [Read more...] about Estate Planning for New Parents
How Do Contract Rights Fit Into Your Estate Plan?
Most people are familiar with joint versus individual ownership of property, but did you know that there’s a third way to own property? It’s through contract rights, and this type of ownership can have a large impact on your estate plan. In general, property in which someone holds contract rights is not subject to probate. Examples of this type of property include payable on death accounts, life insurance policies, retirement accounts, and revocable living trusts. Payable on death accounts … [Read more...] about How Do Contract Rights Fit Into Your Estate Plan?
Is a Life Insurance Policy Considered Part of My Estate?
With so much buzz about the estate tax returning in 2011, many people are taking a closer look at just what constitutes the value of their estate. Some items are obvious – your home for example, your cars and your personal belongings, but what about life insurance? Is that considered part of your estate as well? The answer is yes and no. If the life insurance policy is “owned” by you, then yes, the proceeds of the policy will be included in calculating the value of your estate. If … [Read more...] about Is a Life Insurance Policy Considered Part of My Estate?
What Happens to Assets Not Included in a Trust?
A trust is a legal entity that survives the person who created it. The basic purpose of creating a trust is to ensure easy distribution of assets to the beneficiaries without going through the often lengthy procedure known as probate. The assets covered or transferred in the name of a trust are easily passed on to the named beneficiaries after the death of the trust maker, but what about assets not held within the trust? How are those handled? The simple answer is any assets not held … [Read more...] about What Happens to Assets Not Included in a Trust?
Who Should Know About Your Estate Plan?
After you have prepared an estate plan, the next question is who should you share it with? Do you tell your family about your plan or do you keep this knowledge secret between you and your Estate Planning attorney? The answer to these questions may not be so simple. Let’s look at your choices: You do not tell your family about the estate plan. Your decision to keep the plan undisclosed may be based on your intent to keep your true net worth a secret from your family, and this is not … [Read more...] about Who Should Know About Your Estate Plan?
Estate Planning Basics: Calculating Your Net Worth
When planning your estate, you want to be sure that you give your attorney your complete financial picture. One way to do this is to calculate your net worth. Doing this on an annual basis will also give you an idea of the financial progress you have made over the year. All that’s needed to do this is information on the assets you own and the liabilities you owe. Step I: List all your assets Start with your big assets, such as your home, your cars, boats, rental properties and raw land. … [Read more...] about Estate Planning Basics: Calculating Your Net Worth
Common Estate Planning Mistakes
Estate planning might not sound like the most exciting way to spend your time, but it is definitely one of the most beneficial. Planning your estate ensures that your assets are distributed correctly after you’re gone. Without the explicit instructions a plan would contain, a state-appointed representative will be given the responsibility of distributing your assets as they deem fit. But before you begin trying to plan your own estate, there are some things you should know. One of the most … [Read more...] about Common Estate Planning Mistakes
What Happens if You Don't Have a Will?
We all know how important it is to create a Will, but what happens if we don’t? Where will your assets go? How will your estate be divided? All fair questions – and here’s the answer: if you die without a Will, your estate will be distributed according to what is known as intestacy or “succession” laws. And if that happens, it probably won’t be done in the way you might have liked. Intestacy law basically is a law that determines who has a right to inherit in the case where there is no … [Read more...] about What Happens if You Don't Have a Will?
