Wealth Wisdom: 4 Resources to Help You Plan Your Estate Transfer
Tuesday, December 5, 2017, 6:00 AM | Leave Comment
Since time immemorial, people have been preserving their wealth by keeping it in the family. Egyptians are considered the first people to undertake estate planning in 1800 B.C. The Romans were the next people to adopt this culture. Since then, estate planning has been a norm for the well-off.
Countries like Britain are notoriously known for estate planning, especially in the previous centuries. Nobles were expected to leave their possessions to their firstborn sons. A country like the US first passed its first estate tax in 1976.
In today’s society, estate planning can vary on wealth, goals, health and age. If you want to plan your estate, there are a few must-haves as discussed below.
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Wills and Trusts
Reports show that up to 64 percent of Americans do not have a will. This high number may be due to several reasons.
However, people planning on their real estate transfer need to have a will. The will should comply with the law of the land or state. Your will, therefore, need the services of a legal firm such as Donald B. Linsky & Associate PA or a similar firm in your particular locale.
A trust, on the other hand, is used to direct asset distribution. However, this is only possible after the demise of the estate owner.
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Taxes
In the US, the federal estate tax does not claim any tax on properties left to a spouse or a charity organization.
A law was passed in 2016 that protects the deceased’s estate from federal taxation unless it is over $5.45 million.
Therefore, as you make your estate plan transfer, you need to familiarize yourself with the taxation law.
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Beneficiary Designation
Naming a beneficiary for your estate can help prevent problems in future. There are tons of cases in court today about estate management. Most of these cases are as a result of failure to mention a beneficiary by the deceased.
Therefore, it is essential to choose your heir and put it in writing to avoid such situations.
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Letter of Intent
You can use a letter of intent to communicate how you want your executor to govern your particular property. You can leave this letter to your lawyer or beneficiary.
Letters of intent have been used in some cases to help in distribution of wealth if the deceased has not named a beneficiary.
Having an estate plan is critical and helps in determining where your property goes. There are many people in court battling over properties. Poor estate planning by the deceased causes such situations.
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Anica Oaks is a Freelance writer and web enthusiast. Read some of her published work on her Google+ page.
