Estate owners create a plan to protect their assets and secure them for their heirs. The estate owner’s plan outlines how their assets are divided among their family and how taxes are paid for their inheritance. The plans can decrease the value of the estate and decrease its time in probate.
A Last Will and Testament
The last will and testament explain how all the estate owner’s assets are divided among their family. This includes all monetary assets, real estate, automobiles, and any assets of value. They can distribute sentimental assets to family members, too. The will states details about minor children, too. The will is read by an executor that explains all the stipulations of each assignment that could alter how they receive their inheritance. The attorney helps the estate owner officiate the document, and they can list terms to prevent the family from arguing about assignments.
Separate Assets from the Estate
An irrevocable trust could help the estate owner decrease the value of their estate by transferring some assets out of the estate and listing it under the irrevocable trust. With the trust, the assets are still owned and controlled by the estate owner, but they are not listed in their name.
The estate owner sets up a successor to take over the trust after they die. The successor will control all assets in the trust after the trust is transferred to them. By decreasing the value of the estate, the estate doesn’t spend as much time in the probate court.
Setting an Account for Inheritance Taxes
The estate owner can set up a separate account to manage all inheritance taxes for their heirs. It could prevent a financial hardship for their heirs if they inherit an asset that has a higher-than-average tax implication. The account will be used to pay these expenses and won’t be included in the estate. It could be a life insurance policy or a trust outside the estate. Estate owners can learn more about setting up these accounts by contacting Kania Law Office now.
Set Up Trust Funds for Heirs
Trust funds are beneficial ways to give heirs monetary assets that are disbursed over a period of time, and they give the heirs money for college and financial support. Each of these options could include stipulations that prevent the heir from spending the money frivolously and become broke.
Start Life Insurance Policies
Life insurance policies can pay for the estate owner’s final expenses and give the family some financial support after they die. The face value of the policy depends on what type of insurance the estate owner chooses. They can review their options and secure a specific amount of coverage for their family.
Estate owners will need to find better ways to protect their assets when they die. The probate court will require their estate to be evaluated after they die, and the court will allow liens against the estate to collect outstanding debts. Estate owners can learn more about the process by contacting an attorney now.