Tools that need to be used during estate planning
We've mentioned in a recent post the need for everyone to put together a will and a trust when considering how one's estate should be administrated. In fact, there are a large number of documents that would be useful for the purposes of estate planning. There are also a variety of strategies that can be used when putting together a trust or a will.
We have heard a great deal in the media concerning the creation of living wills and living trusts. Unfortunately, not every commentator who speaks of such tools does so with the knowledge that each state regulates the use of these documents differently. The way that these sorts of documents may be used in Pennsylvania will be different from other locations due to the differences in state law.
Also, it is a mistake to rely upon a single document such as a living trust for all of one's estate planning needs. Living trusts are useful in the event one should become disabled, but a living trust cannot be relied upon if one is attempting to prevent certain assets from going through probate.
When it comes to the preservation of certain assets for our heirs clients will need to heavily rely upon their attorneys for making certain state requirements are met. Attorneys that understand this area of law can advise regarding the best manner of preserving the estate. Attorneys can also forewarn regarding the tax consequences that can come about if distribution of assets is done in a particular way.
When it comes to something as important as making certain your assets are passed on in the manner that you wish, please at least seek out a second opinion before making any steps on your own. Mistakes need to be avoided during this process.
Source: Fox Business, “Documents that Should be Part of Everyone’s Estate Plans,” Andrea Murad, Sep. 4, 2013