You may have worked your whole career to live in comfort and provide for your family. Now, you might be in a comfortable position, having acquired some properties and assets, which you would naturally like your spouse, children or beneficiaries to inherit. Even if you are in sound health and reasonably young, your lawyer might suggest you start thinking of estate planning. You are legally able to construct an estate plan as long as you are over 18 years and are of sound mental health.
Estate planning will serve the following objectives:
* Ensure that most of your properties and assets are transferred to your beneficiaries
* Least amount of taxes are paid on your estate
* Designation of legal guardians for your minor children, if any.
While considering estate planning, you may have to mull over any or all of the following provisions. Wills, Trusts, Power of Attorney. A last will and testament is the bedrock of your estate plan. After ascertaining your needs, your attorney will recommend that you either approach a will-based plan or a trust-based estate plan. The last will and testament will ensure the proper distribution of your properties in the event of your untimely death and also make provisions on who you might appoint to serve as legal guardian to your minor children.
A will is a legal document for distribution of your properties, made in accordance to your wishes. Your attorney might alternatively suggest you have a trust-based plan. The trust is a relationship among three parties in which, part or all of the property (real or personal, tangible or intangible) is transferred from one party (settlor) to be held by another party (trustee) to be held in his/her trust, for the benefit of the third party (beneficiaries). The trustees hold legal title to the trust property or corpus, but the beneficiaries hold equitable title to the corpus. In the US, the settlor may also be referred to as trustor, founder, donor, creator or grantor. Power of attorney gives a person or entity the ability to handle all or part of your legal affairs when you are unable to do so.
In the US, trust-based estate planning is gaining in popularity. The formation of a trust incurs fewer administrative costs and is thus preferred over a will-based plan which might invite higher administrative costs during probate. Even if you decide to make a revocable trust you would still be required to make a last will and testament. To get the best advice, you should visit a CPA or attorney specializing in estate planning. Northville, MI residents will get proper legal advice on how to avoid estate tax liabilities from the many reputed firms offering professional consultation in the area. Estate Planning Northville, MI – While looking for sound advice on estate planning, Northville, MI residents may seek the legal counsel of Wade A. Myers, P.C. for all their queries.