Your will is an important part of your estate plan, but you might also need to establish trusts to dole out your assets when you pass away. There are many different types of trusts, so you have to think about what goals you have for those assets and what circumstances are present.
When you make your estate plan, you need to consider the best way to get assets to your loved ones. You have three primary options. Some assets have a designation known as "payable on death."` This enables you to decide now who they will go to when you pass away. These accounts, which include bank and investment accounts, can't be included in other estate plan documents, such as the will or trusts.
The will is the backbone of the estate plan for many people. For those who live in California, the will must meet specific requirements. Any will that doesn't meet these will be considered invalid by the court. This means that the estate will be handled in accordance with the state's intestate laws, so you won't have any say in who gets what from your estate.
Your estate plan is the key to making sure that your loved ones know what to do with your belongings when you pass away. There are many facets to these plans that you have to think about when you are creating the plan for the first time. We know this might seem like a huge undertaking, but we are here to help you along the way.
When you create an estate plan these days, you need to worry about more than the money in your bank or retirement account, your house and the things in it.
The idea of an inheritance is fairly universal, and most people you ask may say that they expect to get one someday. However, one survey showed that is not the case at all, as most of the people who responded had never gotten one.
When creating an educational trust for multiple heirs -- three grandchildren, for instance -- people will sometimes elect to put all the money into the same "pot." They just set up a general fund and all three heirs are allowed to take the money out and use it for college-related expenses.
Estate planning essentially involves determining how to pass your estate on to your children when you die. However, who says you have to wait until then to give them the assets you have set aside for them? Should you consider doing this while you are still alive?
What do Prince, John Denver, Tupac Shakur and Amy Winehouse have in common? They all died without a will. As a recent CNBC article noted, the years have seen many famous musicians with large estates die without a will or similar estate planning device in place. Reports are that Aretha Franklin now also makes this list.