Estate Planning Basics

You have probably accomplished a great deal with your life. Over the years you have worked, planned and saved. Perhaps you have even made some sacrifices to achieve your current level of success. It's a sure bet that you will want to pass along your accumulated assets rather than hand them over for court costs, taxes or attorney fees.

Estate planning is the relatively simple process by which you prepare legal documents outlining your wishes for your estate upon your death. It can be difficult to plan for the end of your life, but this planning is necessary to protect your family and your assets.

What is your estate?

Your estate refers to your property, those things you own, including your total assets and liabilities. Your property includes your home, car, accounts (i.e. bank, retirement, and brokerage), jewelry, insurance policies and so forth.

The language of estate planning

It is understandable that the idea of planning for your family after die can be a little frightening. Familiarity with the terms used in estate planning will help you begin to develop some comfort with the process.

Estate: Refers to your property or those things that you own.

Property: Includes two categories, real (as in real estate/your home(s) and personal, which includes everything else such as stocks, bank accounts, car(s), jewelry, and so forth.

Intestate: Is a pre, or non-planning state. Dying intestate means that you have died without creating a will or trust to outline your desires for distribution of your estate.

Trust: Eliminates many of the financial risks in planning for the transfer of your estate from you to your heirs upon your death. Risks include taxes, probate, lawyers, creditors, judgments, etc. A trust can provide for the management of your estate if you become incapacitated as well reduce death taxes and assure a smooth transfer of your property according to your wishes. Trusts can be revocable or irrevocable. Talk with your tax or legal advisor about the benefits of each.

Probate: The process by which your personal property is legally transferred to your heirs upon your death. The probate process also identifies rightful heirs and determines how your assets will be distributed among them. Probate can be quite expensive (up to 10% of the net worth of your estate) but the expense can be avoided with estate planning.

Will: A written, legal document outlining your wishes for your real and personal property upon your death. You can also appoint a guardian for any minor children.

Beneficiaries: These are the people you assign to benefit with distribution of your real and personal property upon your death.

Your will can be an important tool of your estate plan. The goal of the estate plan is to allow you, rather than probate court and attorney, to maintain control of your assets. Planning allows you the opportunity to set forth clear directions and desires for your assets in the event of your death or physical or mental incapacitation.

Estate planning is a necessary and painless process. You will afford yourself peace of mind and you will smooth the road for your heirs in terms of property transfer upon your death.

Amy Nichols is a freelance writer and contributing author to http://www.howtowriteawill.com, a site providing free estate planning tips and information.

---

Budgeting Before Buying

With interest rates being at an all-time low, I can... Read More

Top 10+ Ways to Jumpstart your New Year?s Finances!

Of course, these don't have to be done in any... Read More

Personal Loans For Homeowners ? One Of The Numerous Rewards For Being A Homeowner

You no longer look at the pictures of homes cause... Read More

Debt Management ? More Ways to Save on Gas Consumption

The price of gas continues to climb, and with continued... Read More

Budget Planning - Its Elementary My Dear Watson

Does it feel like you have to be Sherlock Holmes... Read More

What is a Traditional IRA?

With a traditional Investment Retirement Account (IRA) you pay taxes... Read More

The Changing Shape of Family Finances

Super-mumsIt seems that the proof of maternal efforts is no... Read More

Save Money on Gas

Gas prices have soared to unimaginable heights of late. Since... Read More

The Magic Of Compound Interest

Christians are called to be good stewards of God's resources.... Read More

Take Control and Master Your Kitchen

Those who keep a watchful eye on where their money... Read More

Affording a Home

Can you really afford a house? If so, how much... Read More

Healthy Eating On A Budget

It is possible to eat a healthy, balanced diet without... Read More

10 Quick And Cheap Ways To Cut Your Heating Bill

When you received an energy (heating) bill last winter, were... Read More

Reduce College Debt with Scholarships

Six Scholarship judges were sitting around an oval table. Forms... Read More

Whats The Truth Behind Your Finances?

Between 15 - 20% of people in our country (UK)... Read More

Can You Afford Not To Look After Your Personal Finances?

Investing is a subject a lot of people don't want... Read More

Check Facts and Figures

Are you a check fanatic? Don't worry, you aren't alone.... Read More

Basic Bank Accounts Failing the Basic Needs of Consumers

The lists of bank and savings accounts that are available... Read More

10 Money-Saving Tips

1. If you have your haircut every 3 weeks, try... Read More

Check Fraud and Verification

Before buying personal or business checks you should inform yourself... Read More

Budgeting -- The Critical Flaw That Causes Most Budgets to Fail

Budgeting. It's a word we're all familiar with. Everyone knows... Read More

Developing a budget? Watch out for Those Budget-Bursting Gremlins

If you've developed a household budget to get your spending... Read More

10 Tips To Save Money When Dining Out

Here are some tips that can help you save money... Read More

Financial Security

1) HOW TO LOOK FOR A JOBA) The Chronological Curriculum:1.... Read More

How To Free-Up 10% to 15% of Your Income

Would you be interested in freeing up 10% to 15%... Read More

Planning Ahead with Your Finances

If you, like most people, have not seriously considered what... Read More

How To Get Ahead On A Low Income

Do you struggle from week to week trying to make... Read More

The Joys of Address Labels

Address labels are many things to many different people. If... Read More

Personal Checks ? Extreme Benefits

Millions of people have a checking account and many people... Read More

The Good and the Bad of Money Management

Good money management needn't be difficult. In fact, there a... Read More

Make or Break Your Retirement!

The Prudential has dubbed those who refuse to leave home... Read More

How to Balance Your Checkbook ? Get a Calculator and Pencil and You are Ready To Go!

Despite how easy it is to balance a checkbook, very... Read More

Financing Collectibles for Fun and Profit

With the advent of the internet and especially auction services... Read More