Michael E Weintraub Esq as the name suggests, estate planning is the process by which you systematically arrange your financial and personal matters so that your estate can pass on to the intended beneficiaries without any problems when you die. The essential legal document is your last will and testament containing instructions. In writing regarding how you desire your assets to be distributed after you pass. Michael E Weintraub esq examines the consequences of your dying intestate, i.e., without making a will or an estate plan:
What Happens If You Die Without Making A Will and Estate Plan
If you die without making a last will and testament. Your survivors will not know how you intended your estate to be distributed. In the nonexistence of a valid will, the intestacy laws of the state. In which you resided and owned property at the time of your passing will determine the allotment of your assets. The order of inheritance is your spouse. And children, but if you do not have a spouse or a child, your parents will inherit. In case your parents are already dead, your siblings will inherit. Your property, otherwise, your nephews and nieces will get your assets.
The Different Parts of a Last Will and Testament, Explained by Michael E Weintraub esq
There are typically four distinct parts of a last will and testament. The first part specifies how your bills will be settled. While the second deals with the cost of estate settlement, including the payment of all taxes. The third part will specify who is responsible for the esp. estate settlement and their powers. This part will also deal with the appointment of a guardian who will be responsible. For raising any minor children that you may have at the time of your death. The fourth and final part of the will describes who will be the beneficiaries of your estate. As well as how and when they will get their shares, observes Michael E Weintraub esq.
The Disadvantage of a Will Specifying the Disposal of the Complete Estate
The primary disadvantage of a will is that it has to undergo probate before the beneficiaries can get what is their right. The process can take six to nine months, during which they will not be able to enjoy your assets. To prevent this, you can create a revocable living trust. That is a legal document specifying the manner of administration of your estate. If you are mentally incapacitated. It will also contain whatever your last will and testament would have included if you had not taken this route. By transferring all your assets to a trust and also making it the beneficiary of other assets. Like retirement accounts and life insurance, during your lifetime, it is possible to avoid probate. The assets of the trust can then pass directly to the intended beneficiaries.
It is thus clear that making a will or, for that matter, a revocable living trust is essential for distributing your assets after your demise in the way you intended. Not doing this is a surefire way of involving your family in a long, arduous, and costly process of deciding on the inheritance.