Bay Area Services Incorporated

Overview

For many people the idea of estate planning means a job which is to be done when one grows old and this is the most popular conception all over the world. Although in some ways it is also right but estate planning late in life can create difficulties for the individual which are legal and involve tax incidences which can seriously jeopardize the estate one has earned in life. The importance of estate planning hence is great and it also lets one to distribute the valuable assets to one’s family members or to those causes which one wishes. Another popular misconception about estate planning is that it is only for the rich who have huge estates on the contrary one can secure their estate or property however small it is, legally after one’s death so that posterity can benefit from it.

Facts about Estate Planning

The best time to do estate planning is when one is in sound mental and physical condition so that one can distribute one’s estate according to one’s will. If the estate planning is done during illness the claims of the beneficiaries and the provisions of the estate plan can be challenged which might result in property disputes among the beneficiaries. The legal tools with which one can do estate planning include will, different types of trusts, different types of property ownership, powers of attorney, gifting, and beneficiary designations. Attorneys these days also ask their clients to make a living will, however a living will should not be confused with a durable medical power of attorney. A living will only control the decisions which should be made towards the end of the subject’s life while the power of attorney authorizes family members or friends of the subject to take decisions. Individuals thus authorized to take decisions cannot however take end of life decisions for the subject. When there is no living will of the subject or the subject is not able to make end of life decisions for themselves the decisions are to take by the members of the family.

When one wants to do estate planning while strong in mind and body one must take stock of all the estate that one owns and then evaluate them. Generally the estate can consist of house or houses, the land one owns, cars and other automobiles, current cash in hand, stocks and bonds, mutual funds, pension and savings account, jewelry, and precious art collection. Debts and obligations are also counted in the estate planning. Although the list can be more exhaustive varying from person to person but these are the general items which one must take into consideration while estate planning. It is easier for small estate to plan but when the estate huge one must take the help of professionals such as estate planners, and CPAs and attorneys. With professional help in estate planning one can expect tax reduction. Along with taking stock of one’s estate one must likewise list the beneficiaries whom one wants to bequeath their estate. Mediation estate planning is the best way to avoid any future conflict among the potential beneficiaries of the estate.