An estate plan is a document consisting of multiple trivial elements such as the living will or healthcare proxy or also known as medical power of attorney and assignment of power of attorney. Some people also include trust into their wills. Once you merge all these things together, you have to get it certified under the legal laws of both the federal and state governments. Basically everyone needs to have a will, to inform the world where you wish to allocate your assets to after you leave the world. In fact, it is the best way to consign guardians for your children.
Those dying without a proper estate planning, having no will to display upon their deaths are known to be dying intestate. However, this implies that your heirs need to struggle through several legal procedures in order to take over the assets. Having a trust does not guarantee the ownership transfer; it is insufficient because you still need a will to be in charge of your trust to inherit them to your beneficiaries. In addition, it is advisable that you discuss the plan with your children to avoid future discord, especially if you know your heirs may come in strong disagreement with one another.
To begin with your estate plan, you have to gather all appropriate information such as insurance policies, investments, real estate or business interests, financial condition, and any retirement savings. Then ponder to yourself several questions like who you wish to assign to the job of handling your financial affairs if you happen to be incapacitated. Then consider whom you intend to inherit your assets to and give thoughts into plotting the responsibility of your medical decisions should you be bedridden and unconscious. Some people think that having infinite amount of money indicates a good estate planning but this is not always the case. Leaving all your properties and cash to your spouse does not imply it will be exempted from estate tax because you will instead increase his or her taxable estate. Subsequently, if your spouse leaves the money to your children upon his or her death, they will end up paying higher estate taxes. At all cases, having a will is the best item to solve all hassles.
Estate Planning – What Can You Do?
When it comes to Estate Planning, there are a number of things you can do. These are explored in more detail below: –
• Make a Will: In making a last Will and Testament, you have a legally-binding document which guarantees how your Estate will be distributed when you pass away. Without one, the rules of Intestacy will apply, meaning your loved ones may lose out;
• Inheritance Tax Planning: You need to be aware whether or not your Estate is valued over the Inheritance Tax threshold – currently held at 325,000 if you are single, and 650,000 if you are married or in a civil partnership. If it is due, Inheritance Tax can have a significant effect on the sum of inheritance beneficiaries are left with. However, there are certain measures you can take to help reduce the impact of tax. If possible you could make gifts to your beneficiaries, effectively distributing your assets before your death. As long as this is done seven years before you pass away, these assets will not be eligible for tax. Additionally, you may want to research exemptions, whereby you move assets into the name of your spouse or civil partner;
• Trusts – There are many different types of Trusts that suit various circumstances, and they are an excellent way of controlling your Estate, even after you are gone. For example, if a beneficiary is a minor, you may decide to hand over their sum of inheritance to a Trustee to hold temporarily. The Trustee will then follow instructions set out by the deceased regarding how and when the beneficiary is to receive their inheritance.
• Organize Your Affairs: By keeping your affairs in order, your Executors will have a much easier time when it comes to Estate Administration. Organize your paperwork, pay any outstanding debts and ensure your Will is up-to-date and accessible.
Ask The Experts.
If you need help planning the disposal of your Estate, contact a legal expert today in Hooper Utah. Whether you need assistance drafting a Will, advice on Inheritance Tax, or guidance on the different types of Trusts, a solicitor will be able to offer professional help on all your legal matters.
Drafting a Will
Due to unemployment and the downturn in the economy, more people are neglecting to make plans for their property and assets in the event of their death. Young people especially are so focused on trying to stay afloat today that they are not considering what will happen in the future. It is important for young adults to create wills and powers of attorney in the event of death or severe injury. A number of adults die prematurely due to injury and disease so it is necessary to make plans before it is too late. It is never too early to begin estate planning, and young adults especially need to start planning their estate. Even if you do not have a great deal of wealth, property or family, it is still a good idea to designate what will happen to your assets in the case of your death. Drafting a will is one of the easiest ways to begin estate planning.
Who can make a will in Hooper Utah
In Hooper Utah, you must be 18 years or older to make a will. You may be younger than 18 and execute a valid will if you are married or in the Armed Forces. There are two ways to make a will in Hooper Utah. Either you can attest a will which means that you formally draw up a will and have the document signed by two witnesses.
Usually you can hire an attorney to help you draft your will, but it is possible to make a holographic or handwritten will which does not need to be signed by witnesses. However, it is best to get legal advice when making a will to make sure that the will is legally valid. If you do not have a will, then at the time of your death, your property and assets will be distributed through intestacy. In Hooper Utah, intestacy and the heir ship process can be complicated. It is best to create a will so that your wishes will be carried out instead of leaving it up to the laws of intestacy in Hooper Utah to divide your property.
Reasons for Young Adults to Draft Wills in Hooper Utah
It would be especially beneficial to create a will if you have minor children. In the will, it should appoint guardians and designate people who you want to take care of your children in the event both parents are no longer living. Also, even though it is possible for children to inherit property, assets, and money, they do not have the legal capacity to manage it. A trust should be created with a trustee in charge of the assets until the children reach the age of majority, or an older age when you believe your children will have the ability to responsibly manage their property. It is better to appoint someone you trust than to let the court appoint someone who may or may not have your children’s best interest at heart.
Even if you have no children, it is still necessary to have a will if you are married. It may be surprising to find out that your spouse may not inherit all of your property in the event of your death. Your siblings, parents and other family members may be entitled to a portion of your estate if it has to pass under the intestacy laws of Hooper Utah. Especially if you have a large family, it is possible that some family members will contest the division of property. A valid will may not prevent people from challenging the division of property, but the will can provide the court guidance concerning your wishes, and will make it much more difficult for a challenge to be successful. Usually courts try to honor the wishes and directions in a will.
Some people believe that if they do not have any spouses, children, family or property they do not need to draw up a will or do any form of estate planning. Even if you do not have property and family, it is still wise to have a power of attorney for you in case you are incapacitated during your lifetime and need someone to take care of financial and health care matters.
Probate Concerns in Hooper Utah
Probate is the legal process of validating the will and settling the estate of the deceased. If the there is a will then a probate attorney can file an application to the court to admit the will for probate. Usually an executor is named in the will and the executor’s purpose is to make sure all the provisions of the will are followed closely. Most people are apprehensive about the probate process. They believe that it is an expensive and complicated process. However, in most cases where there is a valid will, probate is a smooth and straight-forward process.
The default rule in Hooper Utah is that all estates are administered as dependent administrations during probate. This means that the administrator must make an application for court approval before the administrator can take any action such as paying off debts. Dependent administrations are considered costly and time consuming. The judge will appoint an administrator who needs to submit periodic reports to the court and obtain the judge’s approval before taking any action. Due to the reports and waiting for court authorization, there are a lot of administrative costs involved in a dependent administration. It is not always necessary to go through dependent administrations. There is another option called independent administration where an administrator submits an inventory of all the assets and debts to the court where it is filed. The administrator continues to wind up the estate without any further approval from the court after the inventory is filed. The majority of the estates probated in Hooper Utah actually qualify for independent administrations. An estimated 80-90% of Hooper Utah probate cases are independent administrations. In order to be eligible, the will must specifically call for an independent administration. If the will does not call for such administration, an independent administration may still be utilized if all parties under the will agree to it. If there is no will, then all the parties may still agree to an independent administration.
How Estate Planning Services Help?
Due to the high administrative costs and estate taxes, estate planning services provided by professionals are in high demand. This is because the community does not want their lifetime hard-earned savings not being able to be inherited to their loved ones. Estate taxation could be the major killer with a tax of 45 percent during the year 2020 in United States. As such, estate planning experts can help to systematize a plan to allow you to massively transfer whatever you have to your heirs, without much hassle.
The plan will help you to prevent from paying the tax hence maximizing the amount of properties and money to be inherited to your beneficiaries. If you only want several intended heirs to obtain what you wish to leave behind, a proper planning and will are going to help you do so. The professional who have the expertise on tax, estate planning and financial issues will cooperate with you, understanding your demands and accumulating all legal documents including financial information to draft out a potential plan.
With the estate planning services provided by the specialized experts, there are several procedures to go through. For instance, the initial step will be to have a thorough review of your financial condition then analyzing in correspondence to your personal goals. Usually they will prepare questionnaires equipped with personal interviews to gather relevant data before they are able to engage into structuring the plan. More often than not, the information may include some personal philosophy, family background and your objectives. But with sensible knowledge that these are private information, everything is made confidential. Upon the completion of the interview and in-depth understanding of the client, planners will prepare the estate plan draft by outlining the asset disposition and financial situation. After going through several editing and approval, the plan will involve the other people such as the attorney, investment advisors, and insurance advisors before your plan will be deemed legally certified.
Estate planning sounds complex, difficult and costly, but in reality you can take very simple steps to create an estate plan. The easiest thing to do is to hire an attorney to execute a will and a power of attorney for you. If your will is going to be probated in Utah, make sure that the lawyer includes your wish for an independent administration during probate. Remember that you do not need to have several beneficiaries and assets to create a will. Executing wills, financial powers of attorney and medical powers of attorney are also beneficial in managing your assets while you are alive. An independent administration will cut down on the administrative costs involved in probating the will. the event you are unable to make your own decisions for health-related or other reasons.
Free Initial Consultation with Lawyer
It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
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West Jordan, Utah
84088 United States
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