Estate planning is the process of ensuring that the will states the wishes of the individual, making sure all of the assets are distributed appropriately, effectively reducing the estate tax as much as possible and making sure a viable power of attorney has been put into place. One of the first functions of the process is to make sure that an executor is established to oversee the will and wishes of the decedent. A person should also take an inventory of all of the assets that they possess and make a list of possible people to inherit them.

A person’s assets include, but are not limited to, retirement or investment accounts, personal and business residences, bank accounts, automotive, business interest and insurance policies. A beneficiary should be named for each of the accounts and insurance policies via the institution in which they are held. The will of the individual should state his wishes regarding all of the assets, even if a beneficiary is

Proper planning requires drafting a will and ensuring its legality. It should be stored in a safe place and a copy should be given to an attorney or the executor. This is the document that entails the wishes of an individual. Periodically, the person should review and update it as necessary.

In 2010, Congress repealed the estate tax so that no one had to pay, no matter how much he had accumulated throughout his life. However, this amount changes annually and it has been reinstated for 2011. Any estates that exceed $5 million in total value are taxed at a rate of 35 percent. This is one of the reasons proper planning is so important. Gifting can help to effectively reduce or avoid this tax.

Although a person may leave their entire estate to the spouse and avoid taxation, this is not always the most beneficial option. It will simply be taxed at a later date upon distribution to the heirs. A better plan is to take advantage of the annual gift tax exclusion of up to $13,000 per person. The individual can gift to as many people as they would like in one year for this amount. The limit is $1 million over the course of their life.

For some people, it is important to leave their heirs with a certain amount of money. Making use of an IRA will allow them to do this and to continue growing their inheritance. This can be a very important part of the planning process. It is much more beneficial to the recipient than simply leaving the lump sum of cash.

The death of a person leaves the loved ones feeling emotionally unprepared many times. However, proper estate planning can relieve some of the stress that comes with the probate process. Making sure that there is an executor who can handle the wishes of the decedent is the first step. Consulting a professional regarding this matter may help to make sure everything is done accurately.

Preparing for your beneficiaries financial needs after you are gone is part of “Estate Planning Book” techniques. You can use Probate Surrogate Records Simcoe 1828 1929 for optimal disposal of your assets.

Tagged with: • •

Filed under: Law

Print This Post Print This Post

Like this post? Subscribe to my RSS feed and get loads more!