Estate planning is about preparing for the future. It centers around someone who wishes to make the hard decisions now so that their families and loved ones are not left to manage or argue over an estate and its assets.
There are numerous reasons as to why anyone with property or a bank account should create an estate plan. The complexity of each person’s plan varies depending on their assets. If you have children from a previous marriage and decide to get remarried, estate planning is a proper vehicle and tool for ensuring your children receive a designated portion of your estate.
How A Conflict Arises
Wills can be contested during probate. Depending on the circumstances, it can be a very costly and time consuming endeavor. Look again at the previous example of the person who got remarried. What happens if that same person decides to avoid estate planning?
When that person passes away, their assets get distributed according to intestate laws. In other words, the law of the state determines how their assets get distributed. Unless the deceased had made their intentions known through a multitude of estate planning tools, then their wishes do not get taken into consideration.
Common Solutions
The problem that most people face is that they want to take care of their and their current spouse. That is both understandable and manageable. To achieve this, people meet with an attorney and divide their estate amongst designated beneficiaries. Your attorney can draft a will stating which assets go to which beneficiaries. When done correctly, a will prevents your estate’s assets from being distributed based on intestate laws.
Your attorney can also advise you how to give your assets to specific beneficiaries while you are still alive.
The other option is to create a trust. Though there are different types of trusts, they are all entities that own the assets you place into them. There are a multitude of options available to you. Here are two examples:
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After you create a trust, a trustee can give your assets to your previously chosen beneficiaries.
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After you pass away, your current spouse can have an interest in the trust during their lifetime. When they pass away, your children own the remaining assets.
Lastly, you can opt to employ all of these techniques. Your estate plan is not a piece of paper; it is a collection of documents specifically chosen by your attorney to carry out your wishes.
C. Alvarez Law
C. Alvarez Law is accustomed to assisting our clients with planning for the future. If you have further questions regarding Last Will & Testaments or trusts, contact us to schedule your consultation. We are compassionate and committed to being the resolution to some of your most complex challenges.
C. Alvarez Law
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