2 Important Things To Know About Estate Planning
It is not unusual for people to wonder if they need an estate plan, but never get around to really getting their estate plan done. This can be dangerous, seeing that everyone will die at some point, so it is best to prepare for the inevitable and make sure you have an estate plan. Here are some things you need to know about planning your estate to make it easier on your family and cheaper overall.
1. Create Trust Accounts
One of the biggest misunderstanding that people have is the difference between a will and a trust. When you create an estate plan with an estate planning attorney you will make both a will and a trust. In the past people used to put all of their money in their will. In this will they would tell people what they wanted to be done with their money. The problem with this is that a will has to go through probate. This is an expensive process with the court that puts everything that happens on public record. It can also be expensive, you have to pay for the attorney fees, and it can take a long time. This means that the money that you thought was going to your family, has now been caught up in court, and is being used to pay the attorney who has to probate it as well. Additionally, many people do not like the idea that their wealth is on public record.
This is why you should put all of your money in a trust. The will can simply be used to give instructions, such as who will care for minor children, but all of the money should be funded in a trust. You can put your bank accounts, house, life insurance policy and so much more in a trust account. This trust account will by pass probate and will make sure your family gets your money faster.
2. Have Power Of Attorney
Too many people forget that estate planning isn't just about the money, it is also about naming someone to make your financial, medical and legal decisions if you can't. There may be a time when you are unable to make decisions for yourself and you need to have someone named your power of attorney who will make decisions that you would make. If you don't have this prepared it can take some time to get a judge to rule on someone. And there is a chance they will choose someone who doesn't share your values. This is why you should do it while you are healthy.
These are just a couple things to know about estate planning. Contact a firm, like Leon J Teichner & Associates, P.C., for more help.
