Estate Planning does not have to be complicated. Hopefully, the following comments will enable you to understand:
- What is estate planning, and
- The estate planning steps.
Proper planning will minimize costs such as legal fees, court costs, and possibly estate and/or income taxes. It will also reduce a loved one’s time and effort. Proper planning will maximize the benefits to you if you become incapacitated ("disabled") and to your family after your death.
WHAT IS ESTATE PLANNING?
Estate Planning is simply making decisions about your PROPERTY and your PERSON in advance in the event of two circumstances. The first circumstance is your inability to make health care or financial decisions ("Disability"). The second circumstance is your death.
| PROPERTY – DISABILITY |
In the event of disability, you decide who will manage/control your property for your benefit. |
| PROPERTY – DEATH |
In the event of death, you instruct to whom, when, and for what purpose your property will be used or given to another individual or charity. |
| PERSON – DISABILITY |
In the event of disability, you decide who will make personal health care decisions for you. You may also make decisions regarding life-sustaining treatment and artificially administered food and water in the event you have a terminal condition or become persistently unconscious. |
| PERSON – DEATH |
You may also direct what is to be done with your body after you pass away. |
Estate Planning may also involve other decisions, such as providing income at disability or retirement and making certain that there is enough money to pay estate taxes.
WHAT ARE THE ESTATE PLANNING STEPS?
STEP 1: Understanding Basic Property Law
First, estate planning involves gaining a basic understanding of: (1) how your property will be inherited at your death and (2) how it will be managed if you become incapacitated ("Basic Property Law").
STEP 2: Understanding the Legal Documents
Second, after you understand basic property law, you need to become familiar with certain legal documents.
STEP 3: Understanding Estate Taxes
Third, a basic knowledge of estate taxes may be important.
STEP 4: Determining One’s Goals and Development of a Plan
Fourth, after steps 1 through 3, you can then make informed estate planning decisions.
STEP 5: Implementation of Your Plan
Fifth and finally, once you have formulated a general plan of action, you will need to visit with an estate planning attorney to help you arrange to legally accomplish your goals.
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