Estate planning refers to the procedure of transferring assets in anticipation of death. Typically, estate planning attempts to preserve a majority of an individual's wealth for beneficiaries, while maintaining flexibility before the person dies. Tax and legal issues are major concerns of adequate estate planning.
Trusts and Wills
Trusts and wills have many similarities related to the distribution of a person's wealth. However, there are distinct legal differences.You can also browse http://speedwelllaw.com/alexandria-estate-planning-attorney/ to get more info about estate planning.
A trust outlines a right to real and personal property. The assets are held by a trustee considered reliable and honest in administering the trust after a person's death. A will is a written, legal declaration by an individual for distribution of his or her wealth. A will also include real or personal property.
Tax Issues for Estate Plans
In most cases, assets of a person's estate are subject to an estate tax, a tax levied against real or personal property before transference occurs. Regardless of how property is distributed, an individual is subject to the estate tax. Another tax is an inheritance tax. This is paid by the beneficiaries who receive real or personal property from an individual.
Legal Issues for Estate Plans
Unless all beneficiaries agree to the distribution of a will, the estate plan is subject to probate court. This process can prove cumbersome and depend on the size of the estate, may cost more to contest than the estate's value. Most probate cases are resolved within nine months; however, complicated taxes or other issues could prolong the process.