To protect your estate fully, you begin by evaluating how it is distributed after you die. The first task is to push your will through probate. This indicates that the county or state could take funds from your estate to distribute them to your creditors. This could prevent your family from accessing your assets for several years. To avoid potential devastation, review concepts used in estate planning.
Concepts Used in Estate Planning
The redistribution of your wealth could help your family to avoid several issues. The key to this concept is to reduce the total value of your estate. The most effective way to accomplish this is to set up a foundation or charitable organization.
Foundations and charitable organizations are transferred out of your name. With this tactic, you transfer ownership of key assets to this new establishment. You could list one of your family members as the owner. The point is to reduce the total number of assets that identify you as the owner. This could include buildings, money, or antique furnishings.
Are Trust Funds Helpful?
An Estate Planning Attorney creates trust funds at your request. These funds allow you to set up an owner and make provisions as to when they are allowed to access the money. You don’t face restrictions as far as how much you can redistribute money to these accounts. All money transferred into a trust fund is no longer considered yours and isn’t a part of your estate. However, inheritance taxes could apply to these accounts.
Creating Your Will
To reduce potential burdens, you could utilize some portion of your life insurance to settle specific debts. For example, in the event that you die before paying off your home, you could identify the policy in your will. Your administrator transfers the funds for you according to your plans.
Estate planning concepts allow you to make decisions about your estate before you die. This could prevent a serious financial burden for your family. A reduction of your estate could reduce the total tax implications assigned to your estate and prevent creditors from filing a claim for outstanding debts. To learn more about these concepts, contact Estate Planning Attorney, Robert S. Cutrona Esq.
