Do you know what an estate plan is? Simply put, an estate plan is a guide about how to handle the testator’s final affairs and assets. People can make estate plans once they’re legal age, although many don’t make them until much later in life.
Estate planning is a multifaceted project with many moving components. In other words, there’s a lot you can do with an estate plan. Here are just a few things to consider when planning your estate:
A will is the most basic form of estate documents. Wills name (or exclude) heirs and direct how the estate’s assets are supposed to be divided among family and friends, among other things.
2. Executor of the estate
An executor is named to distribute assets listed in the estate plans. It would be the executor’s duty to verify and file the will. Probate begins shortly after the will is submitted. The executor will secure the estate’s assets, get in touch with heirs, pay taxes and do many other crucial activities entrusted to them.
3. Child guardian
Parents may worry that they won’t live long enough to see their kids become independent adults. Testators may have guardians named in their estate plans to raise their children, so this is typically a big decision that has to be made.
A will is a basic legal document for estate planning. However, it can be contested and subject to estate taxes. Trusts are frequently created by testators searching for ways to avoid these problems. Using a trust, a trustee can keep assets on behalf of the grantor and distribute them to beneficiaries as directed. Trusts can be used for numerous things, including preserving assets for charity, pets and future generations.
When creating an estate plan, there are several things to comprehend. It might be beneficial to seek out legal guidance and learn about your options.