4/16/2024 0 Comments Estate planning checklist ted talk![]() For example, say you want to bequeath property to a younger relative who's financially immature. Those rules can be complex or straightforward. Instead, it will be managed or distributed according to the rules of the trust. The property you transfer into the trust while you are living will not go through probate. Living TrustĪ trust is a legal entity that can own and manage assets, including real estate, financial accounts, cars, and business interests, among other things. Your financial advisor can help you identify which accounts on your personal balance sheet should have named beneficiaries. You can add beneficiaries to your checking and savings accounts, CDs, investment accounts, annuities, and life insurance policies. They simply transfer to your named beneficiary after you're gone. Named Beneficiariesīank and asset accounts with named beneficiaries do not go to probate. The following five strategies support that goal. You can simply minimize your assets that are subject to probate. You don't have to spend away your wealth to qualify, either. Generally, smaller estate can qualify for an expedited or informal probate. Estate Strategies to Minimize or Avoid Probate You can also distribute your assets however you'd like, even if your preferences don't align with your state's intestacy laws. This is a primary motivation for estate planning - with a structured estate plan, you can minimize assets subject to probate or avoid probate entirely. That's not ideal for your loved ones, who may not receive their inheritance for some time. Probate is the court process governing estate settlement. If you don't have a surviving spouse or children, your property may go to your parents or other relatives. ![]() ![]() Generally, your surviving spouse is at the top of that list, followed by surviving children. These laws define an order of priority for your surviving relatives to receive your property. If you die without a will or estate plan, your state government will settle your estate and divvy up remaining assets according to intestacy laws. Your estate is essentially everything you own and owe.
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