Since it’s impossible to reliably predict what day someone will pass away, most retirees don’t spend their nest eggs irresponsibly. Retirees tend to take it easy on their cornucopias of bonds, stocks, options, cash, and other items of value and not spend them compulsively. As such, people who do have a considerable amount of assets upon their deaths have their estates passed on to others – in most cases, “others” consists of surviving spouses, children, and siblings.
As long as recently-passed people’s assets are protected via an estate plan through US courts of law, they are distributed to whatever or whomever the estate has identified in the amounts that the benefactor had originally outlined.
What Are The Basics Of Estate Plans?
In legal terms, an estate plan consists of the various steps – every estate plan is different; most estate plans will differ considerably from others – the now-deceased benefactor had wanted to be executed immediately after their death. The first and most important part of an estate plan is deciding whether a will or a living trust should be employed.
Should I Choose A Will Or A Living Trust?
You should always have a will in place – that is, if you have a considerable amount of assets you wish to distribute among friends and family members. A will is cheaper than a living trust. Since most people’s assets under ownership change over the years, living trusts should only be selected by people in the latter years of their lives.
Lastly, keep in mind that living trusts are typically best for the wealthy. Have under $1,000,000 of assets? You’re probably better off with the will.
Don’t Worry Too Much About Estate Taxes
As of 2017, the IRS only exacted estate taxes from estates worth more than $5.49 million. Depending on your wealth, you may or may not need tax planning help from an attorney.
If you have assets you’re worried about, don’t wait on the world to change – an estate planning attorney vancouver wa can help relieve your estate anxiety in professional form.