Estate planning is the preparation of the tasks that should take place in the event of death of an individual or the incapacitation of the same individual. Estate planning is usually done by an Estate lawyer or Estate attorney and they get to ensure that the wishes of the individual are followed to ensure that the dependents of the individual are well taken care of. In the past, most people have had the misconception that estate planning is just for the rich. This article will explore three reasons why estate planning is not for the rich and why a Real Estate lawyer is necessary to help you in estate planning.
Firstly in the event of death, the state does appoint administrators to determine how to distribute your wealth if you had no will. This in most cases will translate to the administrator appointing a guardian to take care of your children just in case they were minors and distribute your property. While this may be commendable, the administrator may distribute wealth in a way that would have differed from what you wanted.
Secondly, since life is not always cast in stone no one can predict the future. Some families have had their bread winners incapacitated due to accidents or a long life illness. In extreme circumstances bread winners have gone into a comma and could not help their families move on after such an event. It is therefore prudent to draw up a living trust to help your family in the event of such an occurrence.
A living trust is a legal document in which you as the guarantor transfer title to your property. When you are alive you maintain control over the property and during death the successor which may be a bank or a trusted family member distributes the trust to the named beneficiary. Without this document, the assets will undergo a probate .A probate is public expensive and for most people it is a process they would rather avoid.
Finally, in the event that you are no longer able to take care of your dependents, a letter of instruction is beneficial to help your dependents know what to do. It is for this reasons that powers of attorney are crucial and the most important reason why estate planning is not for the rich. Powers of the Attorney for estate planning gives you the authority to have someone act in your place should you be incapacitated.
In conclusion, there are other factors to be considered while making decisions on estate planning. Working with an Estate lawyer or Columbia trust attorney will go along way in ensuring your loved ones are taken care of.