What to know before planning your estate

What is estate planning?

In short, estate planning is the transfer of your wealth and wealth in the most cost-effective and efficient way. Living Trust becomes a comprehensive tool for doing this, as no other planning device offers the same level of flexibility, control and management while you are alive and when you leave.

In 2015, $ 2.6 billion was lost in probate courts across the country. This is because people did not understand what they had to do to prevent their family members from being trapped in the system. It only takes about 4 Core ™ documents to keep the family safe and out of court.

Good estate planning should be

1). Cost effective and

2). Efficient.

Nationally, 55% of Americans are not planning for the inevitable and are not allowing their families to fight in the probate court system as they lose money and time.

The 2 most important questions Americans ask are:

1. Do I need a will or do I need a trust?

2. Do I have enough to plan?

The probate or court system is where our loved ones end up going to settle our properties if we haven’t planned it. Whether or not we have a will, our estate must be probated in court. If our gross estate (before deductions) is more than $ 150,000 of assets or more than $ 50,000 of real estate in some states and other states, it is much lower like $ 20,000 and more, then the estate must go through a process of succession. Probate comes from the Latin word “i will try” gold “probatus“to try, probe, prove or prove something and in this case someone is trying to prove the validity of your will or is competing to put yourself in the position of trustee of your estate to be able to distribute your property. $ 26,000 and more in a small gross inheritance of $ 500,000 and if you own more by virtue of your home, the cost can easily rise to more than $ 50,0000. When you die intestate without a will, anyone claiming to be a creditor can apply at the probate court to become trustee over your estate (including family) and the court could appoint them if they validate your debt until your debt is fully satisfied, putting absolute dominance over the assets that are supposed to be distributed to your loved ones or a charity.

There are actually 2 probates.

Testament # 1

The first encounter with the Testament occurs while it is alive and we refer to it as the “Living Testament.” That’s when life throws a curve ball at you like a stroke (800,000 people suffer it annually and 35% are 45 or younger), heart attack, dementia or Alzheimer’s. You now have to go to court for a procedure called guardianship so that people can sign on your behalf in legal capacity. The court proceeding has an average cost of $ 20,000 and many exceed it due to the need for the court to visually see the person (they will take you to court in this condition), make sure the person seeking the appointment is trustworthy ( many are not and it leads to elder abuse). There is a simple document that is part of a simple estate plan that avoids this scenario entirely and is easy to implement as you select the person to act as your Agent today while you are healthy and clear.

Testament # 2

The second encounter with the estate is when you die with a will or without a will; It doesn’t matter if you both end up in probate court. This can be expensive, time consuming, and open to the public, as marketers use the Freedom of Information Act (FOIA) to access court documents and market services. The court will not allow full distribution of the estate for at least one year in many states so that creditors can have a chance to file suit in court. You have to ring the dinner bell on a post that says “come and get it.” Then, a credit could be filed in Probate Court to become the administrator of the estate (if there is no will) or a possible petition to become the executor (where there is a will) so that they can use the leverage to satisfy their debt. Imagine this third party going to court and petitioning the court to become the controller of your deceased loved one’s estate; it happens every day.

You can eliminate these two hassles for your loved ones if you have a living trust and a durable power of attorney to cover any situation that may occur. It is also strongly recommended that you create an advanced health care directive (called a living will in some states) that outlines what you want if you are facing a vegetative state or coma and doctors have not given much hope of recovery to a vegetative state. meaningful way of life. If we don’t let others know what we want, they will go out of their way to solve it while we are incapacitated and we may delay unnecessarily while family members fight in court and medical bills add up and deplete the life of your estate that belongs to our family; after all our life’s work to accumulate it.

In conclusion, there are two plans you can choose from:

A. The government’s plan (the succession generates 2.6 billion per year), or

B. Your plan that brings more of your wealth to your loved ones or charity of your choice.