Because of tax laws and certain specific safeguards you may want to include in your estate plan somewhat complicated financial instruments are sometimes utilized. But even when this is necessary you can also add some other components to your estate plan that are simple and straightforward.
There is no reason to make things more difficult than they have to be, and this is one of the reasons why it is a good idea to consult with an estate planning attorney when you’re serious about planning for the future. He or she will help you map out a plan that enables a fast and efficient transfer of assets to your loved ones after you pass away.
With this in mind let’s take a look at a couple of direct methods you can use to transfer assets to your loved ones outside of the process of probate, which can be costly and time-consuming.
The first one we would like to mention is life insurance. Most people are introduced to life insurance when they first sign up for benefits that are offered by their employer. This can get you thinking about the future at a young age, and as you advance along your life’s path and you take on additional responsibilities you are inevitably going to need to revisit your insurance coverage and make the appropriate adjustments.
Another thing to consider would be pay on death or transfer on death accounts. These accounts are somewhat self-explanatory; when you open the account you name a beneficiary, and upon your death this beneficiary assumes ownership of the assets that remain in the account. Most banks offer pay on death accounts, and there are brokerages that offer them as well.
Estate planning is generally going to involve a combination of actions. The best way to formulate a multi-pronged plan is to consult with an experienced estate planning attorney who will bring a comprehensive understanding of all the tools that are available to the table.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.