subject: What are the necessary steps for Estate Planning? [print this page] What are the necessary steps for Estate Planning?
Estate planning is one of the most important things to do for living a successful as well a contended and peaceful life. Estate is the net assets of a person; possessed by him this includes all the economic resources, legal rights, benefits and established rights commonly known as entitlements. Planning an estate means to think before hand for the management of the assets while the person is alive. It also allows a person to decide for the distribution of the assets after ones death.
Estate planning mostly helps in administration and management of the assets while a person is alive and even after his death. It is also beneficial as it allow taking action that can minimize taxes and give right of choosing appropriate heirs for the distribution of possessions and the property. In short, the management of all the liabilities at the time is included in estate planning.
The term is also used for the reference of particular property or estate and land. It is also some times refer to real estate and personal estate. Real estate also known as real property in common law is a subset of land or any unmovable property that a person possesses. The property is legally defined to a person and a person has various property rights on it which allows him to work for the improvement. However, the personal property is defined as the assets possessed by a person except for real estate. These assets are movable unlike real property and are not fixed permanently to a place such as buildings or lands. The personal property may refer to collectibles, furniture or vehicles possessed by a person.
Estate planning comprises on three basic options: wills, a living trust or intestate succession. In state succession is actually the procession done by the judiciary if some one dies without a will, than the estate decides how and when the property will be distributed to the heirs; to avoid these circumstances when a will is necessary. There are different types of will through which one can choose as per his choice.
A Will ensures that, upon your death, your estate is distributed to the beneficiaries you choose in accordance with your wishes. A properly drafted and executed Will controls the disposition of all of the assets that you accumulate during your lifetime. Whether you are a millionaire or a person of modest means, you want those assets to go to those that you believe to have them. Most attorneys charge a very reasonable fee for the preparation of a Will. Make sure that your will is prepared in consultation with an attorney!
