Check out this article we found: Most people know that they should have a will, but many don’t know what a will is and how it works. A will, sometimes called a “last will and testament,” is a document that states your final wishes. It is read by a county court after your death, and the court makes sure that your final wishes are carried out. What a Will DoesMost people use a will to leave instructions about what should happen to their property after they die. However, you can also use a will to - Name an executor.
- Name guardians for children and their property.
- Decide how debts and taxes will be paid.
- Provide for pets.
- Serve as a backup to a living trust.
You shouldn’t try to use a will to: - Put conditions on your gifts. (I give my house to Susan if she finishes college.)
- Leave instructions for final arrangements.
- Leave property for your pet.
- Make arrangements for money or property that will be left another way. (Property in a trust or property for which you’ve named a pay-on-death beneficiary.)
for more information: http://www.nolo.com/legal-encyclopedia/what-is-will.html
Read this article we found: Throughout my 16 plus years of practice as an estate planning attorney, I've run across many misconceptions about wills, trusts, probate and estate taxes, but here are what I consider to be the top 6 myths.
1. You don't need an estate plan because your family will "do the right thing."While you may be confident that your family will "do the right thing" after you die and divvy things up in a fair and equitable manner without any major fights, I'm here to tell you that this simply willnot happen. Funny things happen when family and money collide without any written plans or directions. Only a last will and testament or revocable living trust which has been created with the help of an estate planning attorney will insure that your estate will go where you want it to go.
2. You don't need an estate plan because your spouse will inherit everything.This may or may not be true depending on how your assets are titled, who you have named as the beneficiaries of your life insurance and retirement accounts, and the laws of the state where you live at the time of your death as well as the laws of the state where you own real estate at the time of your death.
3. Only the mega wealthy need a complicated estate plan.If you're in a second or later marriage, you're single without any children, you're in a committed relationship but aren't legally married, or want to leave part or all of your estate to charity, then chances are that regardless of your net worth, you'll need more than just a basic estate plan.
4. Probate really isn't all that bad.While I've heard that this is true in some states like Colorado and New Jersey, it's certainly not true in Florida. And even if probate isn't considered to be all that bad in your state of residence (or in another state where you own real estate), it's really easy to avoid probate, so why would you want to leave your loved ones at the mercy of a probate judge who knows nothing about you, your finances or your family?
5. "Death taxes" will take a big bite out of your estate.If you're talking about federal estate taxes, then this couldn't be farther from the truth. With a $5 million federal estate tax exemption, it has been estimated that less than 1/10% of estates will be subject to federal estate taxes. And if you're talking about state estate taxes or inheritance taxes, then first you'll have to live in (or some cases own real estate in) one of the only handful of jurisdictions that collect estate taxes and/or inheritance taxes, and then the value of your estate will need to exceed the state exemption. And even if your estate will be subject to taxes at the state level, in general state estate tax and inheritance tax rates are significantly lower than the federal estate tax rate of 35%.
6. Once your estate plan is done, it's done for good.I've seen this myth rear its ugly head often in my estate planning practice. Why? Because we live in complicated times with complicated laws and have complicated families and complicated finances. So an estate plan that worked 5 years ago, let alone 10 or 15, will undoubtedly not work work in today's even more complicated world.
Some people think that they do not need an estate plan because they are not extremely wealthy or are in the prime of their life. These people don't realize that these are just rumors about estate planning. Estate planning is not just for the wealthy, in fact anyone who has assets needs an estate plan. Also, even if you are extremely healthy you need an estate plan, because anything could happen. Make sure to read the rest of this entry on our Orange County estate planning attorney's blog.
Read this article we found: Planning is an important aspect of retirement planning. It is a way to protect and preserve one’s assets and legacy for the loved ones. Estate planning tools range from complex aspects like creating a trust for tax planning purpose to simple ones like making a will. Outlined here are four important facts about making a will that can help us understand its need and features: 1. Why making a will is important? Making a will is the cornerstone of Estate Planning. Deferring the process of making a will can leave the family of the deceased in a difficult position. ‘If a person dies intestate’ simply put if a person dies without a will then his legal heirs have to apply for a ‘Succession Certificate’. Such certificate obtained by court can prove their relation to the deceased and is required by most institutions for division of assets. For example, the bank will ask for such certificate to release the funds of person who died to his family members. Conversely, in the case of death of a person who has a will, it has to be submitted in the court for ‘Probate’. Probate is court process by which a will is proved valid or invalid. 2. How to make one? As per law, a will can be made with or without the help of a legal counsel. For a will to be legally binding : will has to be made by a person who is above the age of majority; the person signing will should be of sound mental health; will is executed properly i.e it has to be signed by the person preparing his/her will and witnessed by two legally competent adults. The maker of the will has to understand the contents of the will in terms of details of the assets he/she is leaving behind for beneficiaries. It is advisable to make a will while the person is in good health to avoid emotional stress. 3. Is it always simple? Most wills are simple. They contain the details of the existing assets and how to distribute them to the beneficiaries. Nonetheless, there are people with special requirements who opt for a legal expert to address to certain special needs like a beneficiary with special needs, children from previous marriage or a desire to disinherit someone from his/her legacy. 4. Kinds of will A simple will can be written individually by a person. If two or more people are making a statement regarding distribution of their assets then it’s a joint will. A will that can be executed only after occurrence of an event can be a conditional will. A will that is not written or documented is an oral will. A living will is written by person directing his/her doctor to discontinue any treatment which is being given only as artificial support of life. A common man does not know the complexities of legal matters and may not be able to execute a valid will owing to lack of legal awareness. It is advisable to consult a competent estate planning attorney to help one draw up a valid will. Read more at: http://www.moneycontrol.com/news/planning/four-important-factsestate-planningretirement_966783.html?utm_source=ref_article
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