Top Reasons to Consult with an Estate Planning Attorney
PrintDescription: Working with an estate planning attorney can clear the confusion about the various strategies used to safeguard property. These lawyers can help individuals write a will, set up trusts, and act as a personal representative to settle probate estates.
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An estate planning attorney can help people determine if their estate will be subjected to or exempt from probate. The probate process is required for all estates that are not safeguarded by a trust.
There are two types of probate. Intestate refers to estates where a person dies without writing a will. Testate refers to estates where a will has been filed through the court. Intestate estates normally take longer to process because additional tasks need to be performed that are normally taken care of within the will.
The will is used to name the personal representative. It also provides instructions regarding how estate assets should be distributed. Since intestate estates do not have written directives, the court appoints a personal representative and assets are given to rightful heirs according to probate law.
Most people find it easier to hire a lawyer to settle probated estates. However, this can become quite costly if probate extends for several months or if heirs contest the will. With that being said, it can be advantageous to retain a lawyer to provide guidance throughout the process.
Although probate is mandatory, there are several ways to exempt assets. Certain types of property can be transferred using a legal property title or by assigning beneficiaries. Real estate, cars, trucks, boats, and RVs can be gifted to loved ones by obtaining an appropriate joint title. Lawyers can advise which type of title is required within your state of residence.
Funds held in bank accounts and retirement accounts can be gifted by assigning beneficiaries. This is a simple task that only requires filing a form with the financial institution. The same can be done with life insurance policies.
People who have been diagnosed with a terminal illness often gift inheritances while still alive. The IRS allows tax exempt gifts up to $13,000 per person each year. It's always best to consult with a tax accountant to ensure proper protocol is followed. Otherwise, beneficiaries could be subjected to taxation at state and federal levels.
Some estates are exempt from probate because they don't contain valuable assets. The exemption amount varies by state, but typically ranges between $25,000 and $50,000. Estates can only be exempt as long as a last will is filed through the court. The majority of states impose a 45-day waiting period before inheritance property can be disbursed to heirs.
One thing people usually don't think about is what will happen to the family upon their death. As a probate liquidator, I have sat in many courtrooms and watched reality TV-style family feuds occur. If relatives have a tendency to argue and fight, there is a very real potential that family disputes over inheritance will take place.
Designating a lawyer as the personal representative can be a good deterrent for family arguments. If disputes spiral out of control, it is likely that someone will file a lawsuit to contest the will. This act prolongs probate for months and can easily bankrupt small estates.
It is best to conduct estate planning while you're in good health. Writing a will after being told of terminal illness can expose the will to being contested. Heirs can file lawsuits based on the claim that the decedent wasn't of sound mind or influenced by another individual.
Take time to scout around for the best estate planning attorney. It's much easier to work with someone you trust and feel comfortable with, as this is a personal matter that requires adequate attention. Obtain referrals from friends or family, or locate local law firms through the American Bar Association at abanet.org.
About the Author:
Simon Volkov is a California probate liquidator and real estate investor. He provides an extensive estate planning article library to share information and resources that make the process easier. Simon shares tips for hiring an estate planning attorney, ways to avoid probate, and methods to safeguard inheritance property at SimonVolkov.com. Article Source: Eulogy Site - http://EulogySite.com