Estate planning is one of the most crucial decisions you can make to transfer your property in the safe hands. It involves planning in advance who will be the legal heir of your assets after death. Your assets may consist of cash, houses, land, investment and other savings that you have earned during the lifespan.
Estate planning usually may have several objectives; however, the ultimate goal is to transfer the whole estate to the legal beneficiary. Other objectives include paying the least amount of taxes on your property and assigning guardians for minor children if any. You can also go through http://www.voyantlegal.com/ogden-medicaid-planning-attorney.html to hire an estate planning attorney.
Moreover, it's intended to, maximize the value of property, eliminate uncertainties over the administration of a probate and reduce taxes. It can be as simple or complex as the client's needs dictate. Before you attempt to make estate planning, it's important to consider the following terms:
Will: A will is a legal document that states who will receive your property after your death. Leaving the last will can help your family or loved ones avoid probate and prevent arguments about how assets have to be distributed.
Living trust: A trust is similar to the last will under which you entrust your assets to one person or an organization. When creating a living trust, you can transfer all your assets to yourself or another person who you know and trust called a trustee. The trustee is taxed with managing the estate on your behalf of your beneficiary.
Power of attorney: It's a legal power given to a person or organization to handle your affairs in case of your absence or disability to do so. The person who you appoint to handle your case is known as the trustee.