Negosentro.com | What you must know about Will Planning & Estate Planning | Planning is an important skill in life and helps us to live a more organized and full-filling life. It turns out that planning is equally important in death as it is in life. Those who are able to organize their will and leave their estate well planned aptly give an easier time to their heirs.
The process of will planning and estate planning eliminates a lot of unnecessary conflict among those left behind. In many cases, the process of settling pending matters left behind is a costly and time-consuming affair. This kind of planning is not meant for the rich and superrich but anyone can do some planning. Several factors determine how you plan your will and estate. Let’s now turn to some of the things you need to know about this kind of planning.
The ultimate reason why you must be concerned about your will in the first place is ensuring that the beneficiaries have an easy time sharing property amongst themselves. It is solely at the discretion of the person drawing the will to have individuals benefit in whatever ways he/she deems fit. The will must, therefore have very specific directions on who is to benefit in a particular manner.
Bear in mind that some assets will automatically pass to various beneficiaries. These include assets where there is a prior indication or arrangements for the next-of-kin. However, you may reorganize your will to suit various needs.
Beneficiaries may also include any charitable organizations that you want to be included in the list.
It’s paramount that you put into consideration all financial and non-financial assets that are in your name when drawing your will. In other words, all your wealth in assets such as retirement accounts, company shares, life insurance, real estate, life insurance, vehicles, savings, and any other assets attached to you should be part of your will. Furthermore, assets that are held jointly with others also incorporate your estate and should as well be part of the distribution.
Power of the Attorney
The Power of Attorney (POA) is a legal contractual agreement that allows the principal( in this case the drawer of the will) to appoint an agent who will execute the will on their behalf. POA is a very important element in the process of drawing a will and outlining the planning of your estate. Power of Attorney takes various forms. However, as Moloney & Partners Lawyers observe, the most common and perhaps most important is the Financial POA and the Medical POA.
Financial Power of Attorney gives the principal discretion to choose an agent who will be responsible for handling financial decisions on their behalf in case they are physically or mentally incapable of doing so.
Medical Power of Attorney relates particularly to medical decisions in case you are incapacitated and unable to do so. However, this document is only effective if your doctor confirms that you are unable to make such decisions.
The people entrusted with the process of ensuring that the will is executed in accordance to the desires of the principal are referred as trustees. The estate under trustees is said to be held in trust.
The Probate Process Takes Time
The process through which a will is legally executed after the death of the principal is known as probate. The specific procedures of carrying out this process differ from one jurisdiction to the other. The executor of the will must however be in procession of all the relevant documents including a death certificate.
A clearly outlined makes the probate process easier. Otherwise, it can be expensive and time-consuming, lasting from a few months to several years in some cases. There are court fees, taxes, attorney fees among others. Where these elements are factored in, the process is significantly simplified and there can be significant savings on time and money.
The process of sharing up an estate whether the principal is deceased or living can be made easier by drawing up a will. All over the world, cases of contracted battles among heirs of vast estates are common in courts. These legal battles can be avoided. Importantly, involving a knowledgeable party such as an attorney or a dependable, honest, trusted, and a reliable trustee is encouraged.