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Correct Estate Planning Will Help You in the Long Run – A Few Basic Steps to Keep in Mind

— December 6, 2021

A trust with a good structure can enable you to ensure that your plan gets implemented the way you want it.

Simply put, estate planning is a process of ensuring who will get your assets and manage all your accountabilities after your lifetime or if you get incapacitated. The objective here is to make sure that the beneficiaries get the assets to reduce gift tax, estate tax, income tax, and various other taxes. 

Furthermore, the process of estate planning can enable you to create a platform where you have the scope to fine-tune as and when the financial and personal situations evolve. To know more about this, you can check out Morgan Law Group. 

However, when you are opting for an estate plan you need to adhere to a few steps:

  1. Get a team

If you have a team that includes a tax professional, financial advisor, and an estate planning attorney, things can act in your favor. Every person will play an important role to ensure that your estate planning is in the correct place. 

  1. Get your wishes documented

The estate plan should have all the details of things that must happen with the probate assets after your death. If it’s not arranged this way, the state might start to decide on your behalf. Hence, it is necessary to get all your wishes documented. For instance, you should allocate a person you think should make the necessary health decisions for you when you can’t do it yourself. Also, get a durable financial power of attorney who will be accountable for financial decisions if you are not able to. 

  1. You can set up guardianship for all the dependents

It is essential to have a guardian who can take care of the dependents. For instance, it could be a person or a minor who has special needs. Ensure that you get to talk to your selected guardian in advance to get their consent. Make sure that they don’t necessarily need to be the one managing the cash left for the benefit of the kid. Also, assigning a couple as the co-guardian might be tricky if they decide to get divorced. It would be best if you talked to the estate planning attorney on preparing for this situation. 

  1. You need to opt-in for the trusts

It would be best if you considered a trust made in a way to hold cash for the heirs. You must decide all you wish to place in the trust, how it gets distributed, and who receives what. A trust with a good structure can enable you to ensure that your plan gets implemented the way you want it. Always make sure to co-operate with a lawyer who has expertise in estate planning as well as trusts. 

Finally, is the estate subject to any federal estate tax? If yes, you need to know that it’s usually due, in cash generally within nine months of the death. And it could be a concern for you provided the estate is not in cash. It can result in selling assets, such as a house you wished to have an heir. It is essential to talk to a tax professional who will work in co-operation with a financial advisor and the attorney to decide about the apt estate tax planning strategies for your situation. 

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