An Estate Planning Primer

Clients and their knowledgeable advisors should create an estate plan to help them meet their personal and financial goals. If someone dies without a legitimate, up-to-date will, state intestate succession laws may enforce an arrangement on the survivors. Despite the fact that a will is the most basic estate planning method, two out of every three people in the United States die without one. Estate planning near me is an excellent resource for this.

A detailed estate plan will help you organise your assets’ ownership, management, and distribution in ways that meet your needs and goals while minimising estate shrinkage. Without one, whatever you think will happen to your estate after you pass away is unlikely to happen.

Settlement and distribution of estates — Estate transfer is a privilege that can only be exercised by adhering to strict legal processes designed to secure the heirs’ interests. The process of estate settlement entails the appointed executor inventorying the person’s company and personal properties, paying all debts and lawsuits against the estate, determining the legal heirs of the remaining estate assets, and distributing those assets accordingly.

Estate shrinkage is an issue that needs to be addressed. Funeral expenses, hospital care, legal fees, administrative costs, and other debts, as well as various federal and state taxes, are all costs associated with estate settlement. These expenses will significantly reduce the size of your estate. They will trigger a pause in the transfer of your remaining assets to your heirs because they must be compensated before the estate can be completely settled.

The need for estate liquidity Estates are always cash-strapped. The forced selling of nonliquid assets to pay settlement costs will compound estate shrinkage if there isn’t enough liquidity. The buyer still has the upper hand in these cases. Even people of modest means who never found themselves wealthy enough to require extensive estate planning may be surprised. Creditors must be compensated in full before a taxpayer’s heirs can receive their inheritances, in addition to paying Uncle Sam and state tax collectors.


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