The Importance of Estate Planning Lawyers in Asset Protection
The only way to ensure that your belongings are properly distributed according to your wishes after death is to leave behind an airtight plan. Estate planning helps eliminate uncertainties surrounding estate distribution and attempts to maximize value by reducing taxes and expenses. Ultimately, the format, length, and content of your plan will depend on your specific goals and needs. Estate planning attorneys are available to help you through this process. Large estates generally result in more complicated preparation, but regardless of its size, the following tips will help ensure your assets are divided according to your wishes.
You must keep all your documents and information up to date. Your will or trust can be invalidated by a number of major life events, including marriage, divorce, relocation, and the birth of a child. You should also be aware of changes in laws and regulations. Keep your personal and legal information as current as possible. Your attorney should periodically review your will or trust to make sure it is legally binding. Despite how clearly you convey your intentions for your belongings, it takes a trained eye to make sure your legal bases are covered.
Next, check all policies and accounts and learn the beneficiaries listed for your IRAs, qualified plans, and life insurance policies. The beneficiary you indicated when opening these accounts may no longer be the person to whom you would like to leave these assets. Changing the beneficiary simply requires some paperwork; however, if you have an attorney, always seek legal advice before adjusting your plan equity.
You also need to maximize the liquidity of your physical assets and monitor your investment risk. Liquidity refers to the amount of time and effort required to convert your assets into cash. Illiquid assets are substantially more difficult and expensive to sell. Sadly, death will bring all kinds of expenses to your family members, including taxes and funeral costs. Make sure you leave them quick access to enough cash, even if it’s through liquidation.
Naming a dependent executor is one of the most important aspects of estate planning. Most people choose a qualified estate planning attorney executor, while some choose to choose a trusted family member. Your trustee will collect your assets, pay debts and obligations, and distribute your assets according to your wishes. He should select someone who is knowledgeable about probate law and who can be trusted. Considering training and experience, estate planning attorneys are your best option for the position of executor. You need someone who can work remotely from the situation and who is not emotionally involved in the outcome of the estate distribution.
Be sure to consider the character and personality of each person you want to leave behind. If you are the parent of a minor, keep in mind that the person you choose to be the guardian of your child does not necessarily have to manage that child’s trust. You can name a guardian for your child and put someone else in charge of money management. Likewise, if you have a teenager or family member who is notoriously financially irresponsible, you can implement a money management system. Every situation is different, which is why estate planning attorneys are so important.