Download
1 / 12
120 likes | 241 Vues
Understanding estate planning is crucial for safeguarding your legacy and ensuring your wishes are honored after death. This guide outlines the key elements of wills, the role of executors and administrators, and the importance of proper legal documents. It demystifies terms like testator, decedent, beneficiary, and probate, while also discussing common legal clauses and how to amend a will. Learn about taxes on estates and inheritances, as well as alternative wealth distribution options like trusts and insurance. Ensure peace of mind for you and your family.
E N D
Estate All that a person owns, less all that person’s debts
If the deceased has executed proper legal documents (Will) • The activities of the estate will be carried out by the executor • Executor-person or institution named by the decedent to carry out these functions • If person dies without a will (intestate), the state will name an administrator who will carry out duties
The rights involved in estate planning • Estate taxes - legal entity is required to pay taxes • Inheritance taxes-those who inherit may become liable to pay taxes to the state.
Language of estate planning • Testator-person who makes out a will • Decedent-person who has died • Beneficiary-one who receives an inheritance • Contingent beneficiary-one who takes the place of named beneficiary who has already died • Bequest-specific property or money given to beneficiary
Language of estate planningCont. • Life Estate-form of bequest with some strings attached • Executor or Executrix-person or institution that one names in a will to handle the affairs of the estate • Administrator-appointed person if deceased does not have a will • Probate-court proceeding in which validity of will is established
Basic clauses of a Will • Introductory Clause • Revocation of Prior Wills • Debts and Final Expenses • Bequest Clauses • Survivorship Clauses • Appointment Clauses • The Execution
Changing a Will • 2 ways: • revoked by a brand new will • codicil-document used for minor changes • Cannot be legally amended by crossing out or adding words, removing or adding pages, making erasures • Copies: • attorney - original • keep a copy for yourself • bank if you have named them as executor or coexecutor
When should a Will be amended- reviewed every 3 years • Move to a different state • Changes in family circumstances • Substantial changes in assets and liabilities • Heirs have died • Executor or guardian dies • Tax laws changed
Uncommon Wills • Beware of “do it yourself” estate planning shortcuts • Holographic will - prepared in handwriting of testator • Noncupative will - spoken by the dying individual to another party
Other means to pass on wealth • Trusts-strings attached • Gifts-money can escape taxation • Insurance • Joint names
What should your state plan accomplish • Proper liquidity and distribution of assets • Program of sound management of assets • The assured continuation of a family’s lifestyle in the event of death, disability, or retirement • Minimize taxation • estate taxes • inheritance taxes • income taxes
