No matter how big or small your estate is, it is extremely important for seniors to do some estate planning as it will eliminate complications from happening after they pass on. Post deaths are always stressful for your loved ones; unless you hold a grudge and you would like to make them suffer, putting your estate in order will be very helpful in dealing and coping with your death.
If you think your estate is small enough to be divided amongst heirs without stirring trouble, then think again! Even the simplest of assets can cause arguments which can lead to court hearings and broken families. Then let’s not forget those people who find happiness in causing more heartache to the bereaved family by raising disputes that can hold up your estate for two years or so—these can be your long-forgotten creditors or a distant relative. Having a well planned estate will prevent all these from happening and will ensure you that your loved-ones will get what they deserve.
Your first step in putting your assets in order is finding a good lawyer to guide you with your estate planning. Basically, you will be dealing with wills and trusts, depending on the type of estate you are leaving behind. Your chosen lawyer will help you determine what’s suitable for your asset. Wills are the most common in estate planning. In a will, senior’s wishes are drafted, finalized then signed. Your lawyer will preside over your will and carry out your wishes in the event of your death. However, wills can be contested anytime if heirs will not cooperate.
Trusts are usually used when children are involved—that is, if you are planning to leave a little something for your grandchildren to remember you by. Although setting a trust is more complicated than signing your will, it provides added protection and security to the heir since it can be implemented even if you are still alive. Also, if you are worried about your assets lasting a little longer–long enough to do your heir some good, trusts are the way to go since it can be dispersed over time, leaving the principal asset intact. However, a trust will involve an executor to oversee the asset, usually the lawyer himself.
Some seniors would want their assets to be dispersed while still alive—and it is not at all impossible. One good thing about having your estate dispersed while you are still alive is that you can be sure that it goes as planned and at the same time, you lower your tax burden.
