Essential Documents for Effective Estate Planning

One cannot deny the fact that death is inevitable. No one can escape it, but smart planning can sure help keep the property and all the assets you made from your hard-earned money, in safe hands and away from prying eyes.

So, what is estate planning?

Estate is a comprehensive term used for real estate; bank accounts; stocks, securities; life insurance policies; personal property such as automobiles, jewelry, etc.  An estate planning is done to specify who after the demise of the owner would be the legal guardian and/or owner of the estate. Another reason why people get estate planning done is to reduce the amount of taxes that need to be paid for your property to pass to others after the death. It helps in avoiding the money and times that would otherwise be wasted in probate processes. A property owner can also structure estate planning to establish what sorts of care do you wish to receive, should you be unable to do the same.

Why is estate planning essential?

Listed below are the reasons why estate planning is essential:

• It cuts down the stress of you and your family and mitigates the possibility of family drama that might result in a legal mess.
• What if your spouse decides to marry after your death? A comprehensively structured estate planning will make sure that your assets are passed on to your children and grandchildren. Similarly, it will also restrict your children’s access to inheritance until they have reached a responsible age.
• Having an estate planning will eliminate the possibility of possession by probate. Probate refers to a process by which the court takes every decision of what is to be done with the property; from assessing the value of your assets to appointing the new rightful heir. Probate also makes the estate a public property; to gain access to.

What are all the documents that you are necessary to formulate a flawless estate plan; be it a will or a trust:

LIVING WILL

What if you get physically disabled or incapable of going about your daily routine? Setting up a living will allow you to assign someone to take care of you and make a decision when are unable to make those decisions for yourself.

LAST WILL AND TESTAMENT

The essential document of estate planning, where you specify how should your property be distributed and amongst whom be it charity, family, friends, etc. Through a last will and testament, you appoint an executor who will carry out the distribution procedure, after your demise.

The last will involves a probate process to prove its validity in court and as a public document. In a probate proceeding, the court reviews the person’s assets and determines the inheritors. In short, probate is the legal process of approving a will. A lawyer specializing in probate can help the testator’s family with this process.   

LIVING TRUST

The best way to avoid probate court would be to set up a living trust. Probate court makes your property and the associated demented open to public access. A living trust ensures the privacy of your estate.

If you suddenly become sick or incapacitated, the trustee or the person you assign to manage your affairs and assets can enter the scene without court involvement. A living trust outlines a clear and solid plan on how the trustee should handle your assets to avoid unknowingly disinheriting someone. Therefore, all the beneficiaries designated by the trustor will receive financial protection.  

In addition, a living trust can help protect your estate and intended beneficiaries from certain people. A living trust generally rules over a will when somebody attempts to contest the asset distribution. This allows you to avoid the complicated and costly probate process.  

So, how can you set up a living trust? Estate lawyers can help. Some people choose a trustee company, serving as an agent, trustee, or fiduciary on behalf of a trustor (an individual or business that opens a trust). Trustee companies administer, manage, and transfer the trustor’s assets to the beneficiaries.

POWER OF ATTORNEY

A power of attorney is an important estate planning instrument, which if not made might strand your family members and loved one, in your absence or if you are  In situations where you are incapacitated, make sure that you designate someone to make financial and legal decision on your behalf.

A meticulously structured estate plan will save your family members from all the legal mess, post your demise. Hence, estate planning should be done well-in-advance. Considering the intricacy, we would suggest that you consult a proficient estate planning attorney near Israel who can help guide you through the estate planning and structure an error-free estate plan. You can trust these law firm to provide you with sincere legal service, without fleecing you with unexpected bills.