When it comes to financial planning, estate planning is one of the most used tools. However, according to a report by Forbes, over 50% of Americans between 55-64 of age don’t have an estate plan. If you are amongst those clueless regarding estate planning, you should consult trust and estate attorney in Virginia Beach.
In this blog, we have answered some questions about estate planning and will.
What is estate planning?
Estate planning is a process in which your assets are prepared and distributed to ensure that when you are not present, your financial and health care preferences are met and followed throughout and beyond your mental disabilities.
What is a simple will?
Nothing like “simple will” exists, despite this widespread assumption. We are unique people with unique priorities, interests, and objectives, not to mention unique families. Most individuals prefer to worry about the amount of their estate or its worth rather than the most effective way of distributing what they have to their loved ones. Even if an estate is small, almost all are not fully aware of the default rules that impact asset management and distribution. Each estate plan is individually unique, and although some are more difficult than others, each plan should address the particular objectives and circumstances of a person. Making a will or trust without proper planning can have negative repercussions. There are instances where people accidentally remove their children from the will. Thus, one should ensure that the will they have created is valid. Seeking help from trust and estate attorney is the best way to prevent such mistakes.
How a will and a trust differ?
Will and trust both provide directives on how a person’s assets should be distributed and managed. However, the significant difference is that a will ensure that an estate and assets associated with it go through the probate; and trust ensures the probate is avoided. Another difference is that a will is made public after a person’s demise. On the other hand, a trust is kept private.
With a testament, the property assets are generally frozen for at least a year to allow creditors to submit claims. On the other hand, a trust provides trust administration uninterrupted after death so that property in the trust is available immediately and distributed to your named beneficiaries for paying the necessary expenses. If you are disabled, a trust will also offer quick access to your assets and make sure bills are paid, businesses operate, and money is accessible for you. Since it can be confusing as to which solution to choose, always hire a trusted lawyer from estate planning law firm Virginia Beach.
What happens if one does not have an estate plan?
We all have a property plan – this is the plan set by the country we live in. If you do not make a plan for your own property, your State legislation determines who will be in charge of your property and how it will be divided. They will also decide who will make financial and health choices if you are disabled and who will look after your children after death. …