One of the biggest mistakes people make is not leaving a will or being careful with their estate planning. Estate planning is one of the most effective ways to ensure your loved ones are taken care of after your death. Here’s all you need to know on the subject:
What Is Estate Planning?
Estate planning refers to how you plan to pass various aspects of your estate to others after you pass away. You decide what you will pass on, to whom, and how they will receive it (as an inheritance or gift). Your estate consists of your possessions such as accolades, properties like cars, jewelry, and real estate, investments, and more.
Estate planning with estate planning lawyers isn’t necessarily a one-time process, and you’re allowed to review it as per your need. Because of various changes in life and the laws of your state or country, you might have to make amendments.
Estate planning includes:
Wills
Some assets are called probate assets, and they are distributed to the respective heirs after the probate process. Non-probate assets bypass the will and probate, directly going to their respective beneficiaries. IRAs, 401k plans, and life insurance policies are included among some of the kinds of non-probate assets.
A will should regularly be updated to reflect your decision. Without a will, laws of intestacy take effect. Likely, many of these laws might not have the effect you intend and could leave people you care about empty-handed.
Trusts
Many people set up trusts with the help of a will and trust attorney to avoid the probate process. It’s common for people to set them up for others whom they want to leave an inheritance for but need another individual to manage it for them. They’re also recommended for lower state estate taxes. The trust holds the assets and a trustee oversees it. The beneficiaries are the recipients of the assets.
Powers of Attorney
A power of attorney is an important directive that allows you to assign someone to take care of decisions and business matters for you. Whether you’re unable to do so in case of an accident, or mental or physical illness, you can assign someone to take care of affairs for you.
Mirabile Law Firm is based in Illinois and has experienced individuals spearheading our firm. Our estate planning lawyers, wills and trust attorneys, immigration law services, and bankruptcy services for corporations in Naperville, Glen Ellyn, Carol Stream, Bolingbrook, and surrounding areas are helping out clients in various matters. Get in touch with us today.