Wills, Trusts, and Estate Planning
As any small business owner knows, life is full of uncertainties.
If you’ve amassed any amount of wealth, you’ll want to make sure that your loved ones are provided for no matter what. Making plans ahead of time helps you minimize both the uncertainties and the tax burdens.
Whether drafting a will or setting up a living trust, it’s strongly recommended that you rely on professional advice. The disposition of your estate is an extremely important issue, one that should be handled only by trusted legal experts.
Here is just a brief outline of your estate planning options, as prepared by estate attorneys at Kundel Law Office.
PREPARING A WILL
Your last will and testament, also known as a testamentary will, is a legal document defining how your property will be distributed upon your passing. Once it’s signed, witnessed, and notarized, it becomes legally enforceable.
As soon as your will comes into effect, it goes into
probate court, an administrative procedure making sure that your estate is settled and any creditors made whole. This process is often expensive and can take years to complete. In the end, the court appoints an executor to dispense your assets to your beneficiaries exactly as you’ve instructed.
Wills are traditionally a foundational element of any estate plan. However, the legal costs involved and the slowness of the process are often discouraging. More and more people are turning to alternatives, such as living trusts.
Establishing a Trust
Unlike a will, a living trust is a legal arrangement that defines the disposition of your property while you’re still alive. You set up a trust through a third party, usually a bank or law firm, which then handles the distribution of the assets you’ve entrusted them with. They are legally bound to distribute it to beneficiaries, over a set period of time. You can typically change the arrangement at any time, modifying or revoking the trust at your discretion.
After your death, the entrusted assets don’t
go into probate, which saves both time and money. In case the trust was set up as irrevocable, your assets can also be exempt from the estate tax.
Trusts come in many
different forms, each designed with a particular purpose in mind. We can help you determine which one suits your needs by analyzing the specifics of your situation.
Consult the Experts on Estate Planning
Considering your options on asset protection and estate planning? Reach out to Kundel Law Office today and schedule an appointment today!