What Are the Advantages of an Estate Plan?
An estate plan is a legal plan of action to be executed upon the death of the primary owner. An estate plan can help the family members make sure they remain financially comfortable upon either the mental disability or death of the testator, whichever comes first. If mental disability comes, two plans should be in place. One plan will take care of personal decisions. The second will take care of financial decisions.
If the planner should die, two other plans are required. One plan is needed to make sure that all debts will be paid and another to make sure that the balance of the estate is properly bestowed. Mental incapacity is a possibility, while death is a certainty. For that reason, it is often better to prepare for death than insanity.
Property and assets are divided up according to instructions that are laid down in a document known as a last will and testament. This document is designed to cover important points such as who will be responsible for the estate as the executor and the powers he will have. It will indicate who will inherit the properties in question and how these properties will be transferred to the beneficiaries. Also if the testator has minor children, who will be named guardian until they become of age.
When speaking in terms of property, it is extremely important that the author of the will set it up in such a way that they could rest assured that their property will be distributed as they would see fit. Depending on circumstances, the attorney involved may recommend that a trust be set up to hold the property. A trust has several advantages over a will in terms of designing an estate plan. The most obvious benefit is that the courts have no say in the process by which the property is transferred, thus enabling the beneficiaries to gain access to their inheritance immediately.
In the event of the testator’s disability, he or she must have named someone as having power of attorney. Power of attorney is a right invested in a named person by a legal document as the testator’s agent. As his agent, he has the ability to act in those areas areas as named and defined in the document. This enables the creator of the will to rest assured that their estate will be well looked after, even in the event of their incapacitation.
The best resource to plan for the eventual division of an estate is a respected law firm. Professional attorneys have the resources and the training needed to help testators plan their estates so that only the beneficiaries gain access to their assets and property. This way the client can rest assured that their legacy will be enjoyed only by those whom they name as having the right to enjoy it. An estate plan provides security for both the past and the future in the area of life where it matters most, the family.