Your Beneficiaries are Key
by Admin
Posted on 02-03-2024 11:57 AM
Will be held from april 1st to april 30th. Registration for the spring 2024
estate planning
basics series will open on monday, march 4th. This series focuses on the essential concepts every estate planner needs to know in order to begin advising estate planning clients and drafting estate planning documents. Attendees will gain knowledge of the key documents in an estate plan, how they are structured, and why they are important. Topics will include: when to use a revocable trust and why; special considerations when planning for spouses, descendants, and other beneficiaries; testamentary trusts; and lifetime planning. A variety of estate planning documents will be covered, along with drafting tips and examples.
Consider Your Non-retirement Accounts
Naming a beneficiary for bank accounts and retirement plans makes the account automatically "payable on death" to your beneficiary and allows the funds to skip the probate process. Likewise, in almost all states, you can register your stocks, bonds, or brokerage accounts to transfer to your beneficiary upon your death.
Although the documents you need will vary based on the size and complexity of your estate, it is useful to have the following on hand. Insurance policies, especially for life and disability insurance statements for any financial accounts, like savings, retirement, or investments documents proving ownership of assets, such as mortgages, deeds, and titles balance statements for any outstanding debts for a list specific to your situation, you may want to seek out estate planning advice from an attorney.
Thoughtful estate planning typically starts with creating a library of records. Here’s a list of some key estate planning documents to develop, gather, and organize: last will and testament this document provides guidance and details on an individual’s wishes regarding the distribution of their property and assets after death. The individual publishing the will identifies an executor, who will oversee and manage the estate until its final distribution, including the settlement of any outstanding debts and taxes. A will doesn’t replace agreements related to insurance proceeds, retirement assets, or transfer-on-death investment accounts. Most states require that the will be witnessed by two individuals and signed by the writer.
Estate planning involves determining how an individual’s assets will be preserved, managed, and distributed after death. It also takes into account the management of an individual’s properties and financial obligations in the event that they become incapacitated. Contrary to what most people believe, this isn't a tool meant just for the ultra-wealthy. In fact, anyone can and should consider estate planning. Assets that could make up an individual’s estate include houses, cars, stocks , artwork, life insurance , pensions, and debt. Individuals have various reasons for planning an estate, such as preserving family wealth , providing for a surviving spouse and children, funding children's or grandchildren’s education, or leaving their legacy behind for a charitable cause.
For most people, a california living trust lies at the heart of their estate plan. Sometimes, attorneys will create separate living trusts for spouses, and sometimes joint trusts, depending on their circumstances. This type of trust is called “living,” because it goes into effect and protects you even while you are alive. It also lives on past your own death, and in some cases, beyond the death of your immediate heirs. A living trust is a legally defined “box” into which you place certain kinds of assets so that you and your “successor trustees” have control over those assets.
If you have a large estate, then you need a plan to minimize taxes. Federal estate taxes are triggered if the total value of assets exceeds $11. 58 million. The portion of the estate that exceeds the limit is taxed. Spouses can generally claim an unlimited marital deduction that exempts them from the estate tax, though they can still be taxed at the state level. Six states in the u. S. Have inheritance tax: iowa, kentucky, maryland, nebraska, new jersey, and pennsylvania. These taxes must be paid by the heir of the estate. Consider the following if you want to avoid taxes after death:.