The Basics Of Estate Planning
Estate Planning may be a word that is encountered by many
citizens especially the elderly. What is Estate Planning? What
benefits does it provide to people?
Estate Planning is a method of arranging and considering
alternatives that will satisfy specific wishes and goals to
prepare for things that may happen to a person and the people he
finds special to him.
Estate Planning includes organizing properties and not just
putting them in a simple Will. It also lessens the taxes and
fees that may possibly be charged to these properties. Estate
Planning also includes contingency preparation to ensure that
ones wishes regarding health care and medications will be
followed.
An estate plan may be described as good if it financially
coordinates with the future of the home, business, investments,
insurance and other benefits if ever the person becomes sick or
will pass away. A good estate plan also sets directions to bring
about personal wishes regarding health care in preparation for
the when the person becomes disabled.
It is very important to identify the real definition of the term
"estate" before someone can really perform estate planning.
Estate means all the properties a person owns or has control of.
This is regardless whether if the property is solely named after
him or is in managed in a partnership. This may include real
properties, accounts, bonds and stocks, cash, buildings and
establishments, jewelry, collections, all types of businesses
and even retirement benefits.
Typically, those who really need to have an estate plan are
parents who have minor children, people who have valuable
properties and have sentimental values for them, and also people
who are concerned about their medications and health care.
However, people can still acquire an estate plan whether they
have these categories or not. As long as they have all the
things that are covered by an estate plan, then they can avail
of it.
While a person is alive, it is important to prepare an estate
plan and at the same time implement it. This is the perfect time
for a person to perform and have legal capacity to come up with
a contract. There may be challenges that could occur if an
estate plan is implemented when a person is already disabled.
Others may judge the lack of capacity and the person may be
prone to fraud, abuse and coercion.
Estate Plans may include wills, power of attorney for health
care, living wills, living trusts and limited partnerships. When
entering into a contract, it is very important to make use of
the services of a lawyer. Lawyers are the only certified people
who practice these fields. They are also the only ones who can
supply a person with all the legal requirements and advice
needed in the estate plan. An attorney will be able to answer
legal questions regarding the estate and they will also be able
prepare the person on the cost of the estate plan and other
finances the come with it.
Estate Planning involves sensitive decisions and legal matters.
It would only be beneficial if the person will always consult
with legal advisors and also seek financial and medical advice.
It is important that before a person will enter into estate
planning, he should already have a strong understanding of the
process so that things will not be difficult for those who will
be left behind.