subject: Preparation You Need To Do For Estate Planning [print this page] Preparation You Need To Do For Estate Planning
Estate can be understood as the sum total of the assets owned by an individual. Real estate includes only property or other such assets. However, rest of the assets including any shares, vehicles, units, investments and bank accounts come under the category of estate. With the help of estate planning, a person can choose to transfer the assets he owns to the legal heirs to avoid later confusion and chaos over the matter. It amounts to distribution of real estate and other assets between the legal heirs.
Estate planning is very important and if you have personal and real property, ensure that it is done as per the legal requirements. If you don't do the estate planning properly, there are chances that there would be fights among the heirs. So, if you want to protect the needs and requirements of your loved ones, make sure that you take good interest in estate planning. There are some key things that you need to do for the estate planning. First and foremost, you need to select the beneficiaries or heirs for your personal and real property.
Then, you need to ensure that least tax is deducted during the transfer of wealth. If you get disabled, you will have to ensure that the transfer happens very smoothly. You can decide on the time of pre-distribution. It is not necessary that the transfer happens after your death. You can do the transfer of wealth when you are alive also. If you are handling a business, then you need to make preparations for the business succession.
transfer of power should take place as smoothly as possible. Selecting the rightful owners is also a tough job in some cases. One must also make proper selection of a trustee or guardian to facilitate the transfer of wealth and assets. He looks after the proper distribution of the wealth amongst beneficiaries. The guardian is supposed to look after the expenses of funeral rites as well. Selecting a reliable person in this capacity is important to ensure that things are carried out in keeping with your wishes.
It is required for a guardian pr executor to apply for a probate in most of the cases. Apart from that, a number of expenses have to be borne by the executor which includes testamentary as well as funeral expenses. It is also required of the executor to pay any outstanding debts. The transfer of life insurance coverage money is also the responsibility of the guardian.
The filing of tax returns is also considered the responsibility of a guardian or trustee. One can choose to appoint an acquaintance, family friend or relative as a trustee but these days the popular trend is to appoint a professional for the job. They charge a fee for the job and carry out the duties as required. It is also important to consult a financial planner for determining your financial status.
A professional financial planner would help collect the right kind of information about your finances and can deliver the desired results. You can develop a financial plan in consultation with a financial planner and then review it for any possible loopholes. The planning and implementation of estate planning id of great importance and should not be taken lightly. It can take upto months in coming up with the right kind of estate planning which can deliver the desired results. The implementation is the toughest part which does not have any space for mistakes.
Your choice of financial planner also matters a lot here. The estate planning needs to be done in keeping with the needs of the person. If the financial planner is experienced enough, it can help develop a strategy to suit your needs. If there is any missing factor in planning, it can affect the outcome and implementation adversely.
For distributing your wealth and assets amongst your beneficiaries you need to consider all of these factors in mine when beginning with the estate planning. It would help you avoid committing any mistakes and be extra cautious to make sure that the needs are adequately fulfilled. You can also keep your beneficiaries in the loop while you are involved in estate planning.
