Planning ones estate is of critical importance. It gives people the opportunity to plan for the transfer of their processions in the event of there death. It also caters for instances when an individual may become incapacitated to a point of not being able to make independent decisions. This is critical as it gives the option of having your estate either managed or shared amongst individuals according to your wishes. The act of estate planning also prevents a situation in which family and relatives may be subjected to lengthy and emotionally draining legal court battles that may in some cases last years. The costs incurred may not just be financial in this case and may permanently dent previous thriving relationships. There are a few elements to be considered to ensure that the estate planning mechanism is properly catered for.
Having a health care directive will ensure that a trusted person will make a decision on your behalf in cases when one becomes incapacitated. This therefore gives them the power of attorney which is legally binding and therefore only certain people or person can influence what actions can be taken. It should be noted that clearly stating who can make financial decision is important to ensure that one does not end up in difficult financial position in case where poor financial decisions are made on your behalf.
A will is of critical importance as it clearly states what happens to your property once you pass on. It also identifies guardians for one’s children in cases where a person lives behind minors, therefore ensuring that children will be taken care of. It is also important to name the persons who will be responsible for managing property when property is inherited by a minor. This may be the person named as the guardian or any other person that someone sees fit to manage the property.
A succession plan is also important for cases in which a business is a sole proprietorship to ensure it continues as a going concern. One should also have a buyout agreement in cases where it a partnership to prevent any disputes. I contacted someone to help with estate planning in L.A.
Using a trust mechanism is also a good option. This ensures that individuals do not have to go through the court process which may at times be a long and time consuming exercise if the will is contested in a court of law. Another aspect is to Cleary indicate the beneficiary of funds held in a bank account to which will ensure that funds are automatically sent to their account once a verified death certificate is produced to the bank.
Life insurance is also important to ensure that one’s debt will be catered for in the unfortunate event that the property is attached to a debt or is liable to taxes that will need to be cleared in the future. This ensures that the beneficiaries of the will do not also inherit a financial burden.
The most important is to ensure that one’s attorney and the executor of there will has access to all legal binding documents. This ensures that there is a legally binding record for ones wishes.