What is estate planning?
In short, estate planning is all about transferring your estate and wealth in the most profitable and efficient way. The Living Trust becomes an integral tool for doing this, as no other planning device offers the same level of flexibility, control and management during your lifetime and your departure.
In 2015, $ 2.6 billion was lost in probate courts across the country. This is because people didn't understand what they needed to do to prevent family members from being trapped in the system. It only takes about 4 Core ™ documents to protect the family and avoid the courts.
Good estate planning should be
1). Profitable &
Nationally, 55% of Americans don't plan for the inevitable and don't allow their families to struggle through the estate system because they are wasting money and time.
The 2 biggest questions Americans ask are:
1. Do I need a will or do I need a trust?
2. Do I have enough to plan?
Probate or the court system is where our loved ones end up settling our estates if we haven't planned. Whether we have a will or don't, our estate needs to be verified by the court. If our gross estate (before deductions) is over $ 150,000 in assets or over $ 50,000 in real estate in some states and other states, it is much lower than $ 20,000 and more, then the estate must go through probate. Homologation comes from the Latin word "probare" or "probatus"to try, probe, test or prove something and in this case someone is trying to prove the validity of your will or is trying to set themselves up as administrator of your estate so that they can distribute your property. The average cost is $ 26,000 and more on a small gross estate of $ 500,000 and if you own more under your home, the cost can easily exceed $ 50,000. When you die without a will, anyone who claim to be a creditor can file a claim with the probate court. become the administrator of your estate (even your family) and the court could appoint them if they validate their debt until their debt is fully satisfied, which puts a stranglehold on the assets supposed to be distributed to relatives or to a charity.
There are really 2 estates.
Approval n ° 1
The first encounter with probate occurs while you are alive and we call it 'live probate'. This is when life throws a curved ball at you like a stroke (800,000 people have one per year and 35% are 45 and under), heart attack, dementia or Alzheimer's disease . Now you need to go to court for a procedure called guardianship so that people can sign for you as a legal person. Court proceedings have an average cost of $ 20,000, much exceeding this amount due to the need for the court to visually see the person (it will take you to court in this condition), make sure the person seeking the appointment is trustworthy (many are not). and leads to elder abuse). There is a simple document that is part of a simple estate plan that avoids this scenario entirely and is easy to put together while you select the person who will act as your agent today while you are in. good health and clear.
Approval n ° 2
The second meeting with probate takes place when you die with or without a will; it doesn't matter both end up in probate court. It can be expensive, time consuming, and open to the public, with marketers using the Freedom of Information Act (FOIA) to access court documents so they can market services. The court will not allow full distribution of the estate for at least a year in many states so that creditors can have an opportunity to file a lawsuit in court. You need to ring the dinner bell in a post that reads: "come and get it". Then a credit could file with the Probate Court to become the administrator of the estate (if there is no will) or a possible petition to become the executor. (if there is a will) so they can use the leverage to satisfy their debt. Imagine this third party coming to court and asking the court to become the controller of your deceased loved one's estate; happens every day.
You can eliminate these two hassles for your loved ones by having a living trust and an enduring power of attorney to cover any situation that may arise. It's also highly recommended that you write an advanced healthcare guideline (called a living will in some states) that outlines what you want if you're dealing with a vegetative state or a comma and doctors don't. have not given much hope for a cure. meaningful lifestyle. If we don't let others know what we want, they will try to figure it out while we are incapacitated and we may linger unnecessarily as family members fight in court and that medical bills climb, draining the life of your estate which belongs to our family; after all our lifelong work to build it up.
In conclusion, you can choose two plans:
A. Government plan (homologation generates 2.6 billion per year), or
B. Your plan that makes your wealth more benefit your loved ones or the charity of your choice.