Beginners Guide To Estate Planning

BusinessLegal

  • Author Lvg Law Firm
  • Published March 18, 2021
  • Word count 835

When you realize you have to start planning for the inevitable part of life, that's when the thought of making an estate plan comes into your head. Everyone gets sick or hurt at some point in life; you need a plan to determine what type of medical treatment you will receive if something like this happens to you. Suppose you become incapacitated, unable to make crucial decisions for yourself, or even if you are unable to live on your own. And, of course, the worst could happen, death.

An Estate plan helps shield your family and your assets in case of any unforeseen events. But, not many people know what a complete estate plan is or how to create one. Making an estate plan involves much more than writing a will, and if you're a beginner, you must get an attorney from one of the best law firms in Bethesda, MD. If you are not sure where to start from, this guide will help you.

Identify Your Objectives

Why are you coming up with an estate plan? To this, every person has a different answer. But, the most common are:

Ensuring minor children are cared for till they become adults

Pets being taken care of and provided everything they need if something happens to the owner

A family business to remain operational after the demise of a family member

Planning to make charitable donations

To try reducing or avoiding estate tax on a more significant state

Taking control of what happens to your will or inheritance

And finally, to provide for the disabled loved one.

You can have other reasons as well, and these are just the most common ones. Take into consideration the issues most likely to affect you and your family if you get unwell or have an untimely death.

Assets You Want To Include

A crucial reason why one makes an estate plan is to transfer all their assets to the new owner. Therefore, knowing what assets you want to include will help your family members see what they will own.

Some assets you will want to include are:

Real estate

Vehicles

Proprietorship of a business and its assets

Patents, monetized social media accounts, intellectual property if you have any

Investment accounts

Personal stuff like books, art, furniture, and jewellery

Life insurance policy

You have to appoint a beneficiary to your account. And also, take suggestions from your attorney, who will be familiar with all the Estate Laws in Maryland.

Identifying Risks & Planning To Protect Them

To secure your legacy, keeping your money safe is a vital part. You should identify any risk that could cause hindrance in your plan to pass on your wealth and property to any family member.

You will need to identify risks like:

Loss because of a claim against your business, your assets are vulnerable unless the business property is structured correctly. You can then incorporate your business; this will help you protect your assets. And, this will make it easier for your loved ones to inherit.

Loss due to nursing home care can be costly. Not all nursing homes have the policy of being covered by Medicare or any private medical insurance. You will need to plan to afford this care, which can imply buying long-term medical insurance. By making an individual medical plan, you ensure the safety of your wealth for your future generations.

Losing wealth due to credit claims. But, you could create a trust to help you protect your wealth.

Identifying Everyone You Want To Protect

You will need to make a list of people who will be protected after your demise. Such as,

Spouses

Children

Parents

Pets

Friends

Business partners

You need to make a list of the people you want your belongings to go to. There may also be specific special rules that you can imply. For example, if there are children below 18, then you will need to ensure they are financially provided till they are adults. And choose a guardian if both the parents aren't around. This may seem like a difficult job to carry forward; that is why hiring a Law firm in Bethesda, MD, to do your bidding is a good idea.

Legal Tools

The most common legal tool is considered to be a Trust. You could use a Trust to attain objectives like protecting assets to facilitate proceedings of wealth.

Before all this, you must discuss your options with your attorney, an expert in Estate Laws in Maryland.

Other legal tools may include:

A will or a testament to giving instructions for transferring your assets

A power of attorney to specify who will make decisions on your behalf

A pay on death account means that a person is assigned to inherit all funds in your account upon your demise automatically.

In conclusion, you should work with an attorney who can suggest what is best for you. Your lawyer should know and understand the various legal tools available to your aid to protect you and your loved ones.

Longman & Van Grack has the answer to all your legal question.We assist our client to handle different types of legal matters like Estate Plans & Wills, Business law, Tax Planning & Litigation, and Sports & Recreation Law. For More Info, visit us.

https://www.lvglawfirm.com/

https://www.apsense.com/article/top-five-reasons-to-hire-tax-attorney-for-your-business.html

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