What is a will is a fundamental question. Financial planners claim less than 20 percent of heirs and beneficiaries receive the inheritance they desire. Funeral expenses, unpaid debts, land taxes and legal fees can drain an estate financially, leaving nothing for those left behind.
This article answers the question “what is a will” and provides tips and techniques for keeping assets from leaving a will. Plantations will be processed through the court system more quickly when fewer assets are involved.
A will is a legal process used to validate deceased wills and Final Covenants and binds loose financial purposes. A final will is a tool used to convey final wishes and designate who should receive money, personal belongings, real estate, and valuables.
There are many options for creating Will. A pre-formatted will can be downloaded online or purchased at an office supply store. Complex estates generally require the assistance of a probate attorney or professional estate planner. Much depends on the net worth of the estate and how many heirs are entitled to the assets.
An estate administrator is appointed in the deceased person’s will. This individual is responsible for a variety of tasks, so it is best to appoint someone who is good with finances and able to cope well under pressure. This is especially important when there is a family dispute.
A probate begins when the death certificate of the deceased person is submitted to the probate court. Estate administrators must list asset inventories and obtain property valuations for valuable assets such as real estate, collectibles, antiques, artwork, and heirloom jewelry. Other duties include paying outstanding debts, filing final tax returns and distributing assets according to the directions outlined in the will. Most Administrators need the assistance of an attorney or estate planner.
The probate process usually takes six to nine months to complete. This can be a financial challenge for estates with business or real estate holdings. The estate is responsible for maintaining real estate properties and managing business entities. If the estate does not have the financial means to maintain property or handle business affairs, courts may order these assets to be sold.
A will provides a stage for disgruntled heirs to contest the final will. When family members lose inheritance rights or do not receive assets they believe are entitled to them, they can petition the courts.
Plaintiff is responsible for legal fees. The estate must reimburse the legal costs if the court wins the plaintiff. When Wills is fought over the will can drag on for years and potentially bankrupt the estate. In most cases where Wills is contested, the only person who wins is the lawyer.
Real estate assets can be exempt from probate by establishing a trust. Various types exist and most can be adapted to the needs of the plantation. Trusts are typically provided for estates worth more than $100,000.
Smaller plantations can use a variety of techniques to keep assets away from probate. This includes assigning transfer on death (TOD) and payable on death (POD) beneficiaries. TOD is used with investment and retirement accounts, while POD is used for checking and savings accounts.
The assignment of TOD and POD can be done by filling out a simple form through the financial institution where the account is held. Financial assets avoid probate through beneficiary assignment.
Real estate can avoid going through the probate process by assigning property rights as ‘Joint Tenants’ or ‘Joint Tenants’.
Entitled property such as cars, motorcycles, boats and airplanes can be jointly titled and transferred to the beneficiary upon death without passing a will.
Another option for avoiding a will is to give assets to a loved one while you are still alive. The IRS allows cash prizes of up to $10,000 per person or $20,000 per married couple, per year. This option is often attractive to individuals with chronic or terminal illness.
Probate can be an overwhelming and time-consuming task. By taking the time now to carry out final wills and wills and taking action to keep assets out of probate, you can rest assured knowing your loved ones will receive the legacy you intend to leave.