Estate Planning
Estate planning isn't only for the wealthy, nor is it a topic people enjoy thinking about. However, Better Business Bureau advises consumers that if they own something of value they would like to pass on to family or loved ones at their death, they should create an estate plan. An estate plan can be as simple as drafting a will or as complex as setting up a trust and a living will. BBB offers the following guidance on the basic components of an estate plan and advice on choosing what is necessary for different situations.
At the very least, anyone who has assets that they would like to pass on to specific individuals should create a will. A will can allocate assets as well as establish guardianship of children. While a trust might sound like something only wealthy people need, it's actually a tool for anyone who would like to set conditions on how and when their assets are distributed. A trust can also help reduce the amount of taxes paid on the inheritance and does not have to go through probate-unlike a will.
A living will provides a way for an individual to communicate their desire for life-saving measures in case they are incapacitated. In addition to a living will, individuals can also assign medical power of attorney to someone they trust who can further ensure that their wishes are fulfilled.
For simple estates, many Web sites offer an inexpensive do-it-yourself approach to creating a will; for more involved estates, it's best to enlist the help of a lawyer. BBB advises researching any estate planning companies or lawyers first at www.bbb.org before paying for assistance. After creating an estate plan, BBB recommends communicating the terms of the plan with the family members and loved ones it impacts.
An estate plan needs to be revised every time the individual moves, changes marital status or is affected by major financial changes, such as investments or buying or selling a business.
At the very least, anyone who has assets that they would like to pass on to specific individuals should create a will. A will can allocate assets as well as establish guardianship of children. While a trust might sound like something only wealthy people need, it's actually a tool for anyone who would like to set conditions on how and when their assets are distributed. A trust can also help reduce the amount of taxes paid on the inheritance and does not have to go through probate-unlike a will.
A living will provides a way for an individual to communicate their desire for life-saving measures in case they are incapacitated. In addition to a living will, individuals can also assign medical power of attorney to someone they trust who can further ensure that their wishes are fulfilled.
For simple estates, many Web sites offer an inexpensive do-it-yourself approach to creating a will; for more involved estates, it's best to enlist the help of a lawyer. BBB advises researching any estate planning companies or lawyers first at www.bbb.org before paying for assistance. After creating an estate plan, BBB recommends communicating the terms of the plan with the family members and loved ones it impacts.
An estate plan needs to be revised every time the individual moves, changes marital status or is affected by major financial changes, such as investments or buying or selling a business.
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