Apart from how accidents change a person’s daily life, they also affect every other thing related to it. Assets and properties are some of the things that can be unduly affected by these events. Properties need to be distributed or passed on when people pass away, but only by law.
Usually, there are laws that ascribe ownership of assets automatically. However, the introduction of extraneous circumstances and documents like wills can change the application of the law. To avoid the issues that follow the problems that a lack of will bring, it is better to put everything in order.
“If you own assets and properties, planning how they stay in your family line should be your priority,” says Attorney Cindy Nguyen of Amity Law Group, LLP. This is called estate planning, and it involves the transference of your property ownership to beneficiaries after your death. This article talks about the idea of estate planning and when it should be done.
Table of Contents
What is Estate Planning?
Estate planning refers to the process of transferring a person’s assets and properties to other people, called beneficiaries. It is an essential and necessary procedure that ensures a person’s assets are protected and kept in their family. It ensures proper and legal transference of assets.
Not setting clear instructions regarding the distribution of properties can cause problems in the family. For some families, the friction becomes so tense that it becomes a court case. It is usually at this point that attorneys are required for mediation and litigation.
Why Estate Planning?
The ideal way to plan for loved ones is to ensure that they get what you own when you are no more. Apart from planning for loved ones, you also have to prevent family disputes and limit tax liability. You have to ensure that your children get what they need, even when you are not there with them.
When Do You Start Estate Planning?
Estate planning should be done as soon as you begin to purchase and own assets. Many financial and legal advisors admonish that estate planning should begin at the age of eighteen. However, not many people have purchased any assets to begin with at that age. This is the main reason why many assets are not distributed as they go on to belong to the state after a person’s passing.
Hence, the ideal time for estate planning is when a person is responsible for their financial decisions, power of attorney, and healthcare. This way, everything can be easily traced and accounted for. From the first estate planning document created, it should be reviewed every five years and, where necessary, edited. Here are some times that require you to update your estate planning documents:
Every estate planning phase requires a professional to draft, and you should not be left out.
What Should You Do Before You Begin Estate Planning?
The process of estate planning involves numerous steps, including the following:
Educate Yourself
Drafting an estate plan requires that your assets and properties be meticulously analysed and accounted for. Knowing every asset and property you have determines how it will be distributed. Kindly note that an estate plan is different from a will.
An estate plan comprises:
It is ideal to involve an attorney at this stage,, as it helps to get all things done as legally as possible.
Gather Essential Documents
The next step is to provide proof of ownership, such as a title deed for every land and property you own. Other necessary documents are housing deeds, business ownership permits, and land deeds.
Review Your Beneficiaries
Make a list of people you want to hand over your properties to when you are done. Confirm their names and your relationships with them before putting them on the list.
Specify Directives
Some key directives that must be in your estate plan are:
Conclusion
With all the information listed in this article, you are set to plan your estate. To ensure the legal and efficient distribution of your estate, it is strongly recommended that you carefully review the advice provided here and engage the services of a qualified estate planning attorney in California.
