How To Prepare Your Own Estate Planning Documents
Estate Planning documents are prepared for the distribution of the estate owner’s property to his heirs at his death, occurrence of incompetency or complete disability to avoid probate and save on estate taxes. An estate plan protects your assets during your lifetime and after your death.
Estate planning includes preparing a will and setting up trusts to make sure your beneficiaries receive the property you wish them to receive possibly before your death to further minimize estate taxes.
Avoid Probate With Estate Planning Documents
If there is no will or trust, the assets are distributed according to the laws of the state. Estate planning eliminates state intervention and relieves your heirs from having to pay the expense of probate and saves them from going through the lengthy probate process.
After you’ve prepared your estate, you can go back and make changes to it if events in your life make it necessary to do so such as getting divorced, marital separation, new additions to the family, dispose or acquire substantial assets, change beneficiaries and more.
Revocable Living Trust Agreement
Revocable Living Trust Agreement – An estate planning trust option is a legal entity that owns assets. You can place assets into the trust at anytime or you can revoke it completely if you wish. When you pass away, your assets automatically transfer to your heirs with a trust without going through the probate court system.
Last Will And Testament
Last Will And Testament – An estate planning will is prepared in an estate plan to further cover assets that are acquired after a trust is formed that are not put into the trust. Without a will, assets not put into the trust will be distributed at the discretion of the Probate Court. With a will, assets not put into the trust will be covered even though it is not protected from probate.
Decisions can be made now regarding your medical and financial situation should you become incapacitated later which requires both Living Will forms and Durable Power of Attorney forms for both health care and financial care.
Power Of Attorney
Grant Power of Attorney to a a friend, family member or someone you trust to handle your legal and business affairs as your Attorney-in-Fact.
How Much Will it Cost to Plan an Estate?
In most cases, unless you have a unique or complicated situation, you can prepare your own estate planning forms and save hundreds of dollars in legal fees.
Why Prepare Estate Planning Forms?
You want to make sure the people you care about the most receive the assets you want them to. Planning your estate will help your beneficiaries save time and money, avoid lengthy probate court and minimize estate taxes.
Every adult should have three important estate planning documents: a LAST WILL & TESTAMENT, a LIVING WILL and a POWER OF ATTORNEY. These documents protect your family regarding asset distribution, guardianship, healthcare choices, and naming a representative to handle your personal affairs.
When Should Estate Planning Be Done?
Estate planning should be done as soon as possible because you cannot predict what will happen to you at any time in the future. You will want to protect your beneficiaries whether they are minors, adult beneficiaries from other influences such as bad decisions, creditor problems or divorces. Mainly so your beneficiaries will avoid a big taxes that can be levied. You will want to revisit and revise your estate plan periodically for changes that may occur in your life or your beneficiaries you want to gain possession of your properties may have changed.