The Complicated Rules of Probate and Estate Planning
Estate planning can help you make sure that your valuables, such as jewelry, art, antiques, and other personal belongings, are privately managed and pass to the people you love most when you are unable to do so. Contrary to popular assumption, not only the wealthy should consider estate planning. A thorough plan has benefits for everyone.
Couples of the Same Sex
Contrasting-Sex Pairs
Following the Obergefell ruling by the Supreme Court, same-sex marriage is now permitted in all 50 states. Nonetheless, the legal recognition of same-sex marriage does not absolve same-sex couples from the need to think about estate planning.
Same-sex couples should think about jointly named assets with rights of survivorship and make sure beneficiary designations are current, just like opposite-sex couples do. By using these techniques, a couple can guarantee that their property is divided in accordance with their preferences and reduce estate taxes.
Same-sex couples should also establish financial and medical powers of attorney so that their partner or partners can make choices in their place in the event of an incapacitation. Finally, establishing a donor-advised fund for philanthropic contributions may be advantageous for same-sex couples. This is a great method to help several charities over time and get a tax benefit.
Little Homes
The amount of an estate determines what legal actions need to be taken after death. The majority of states have minimal estate procedures that enable inheritors to submit affidavits rather than undergoing official probate, which reduces the time and cost of settling an inheritance. State-by-state variations exist in the criteria that determine an estate's eligibility for a small-estate process. For this reason, it's critical to thoroughly count all of your assets and take title into account (e.g., joint accounts and assets with designated beneficiaries).
Whether your estate is eligible for a small-estate affidavit or a streamlined court procedure, such as a voluntary administration, can be ascertained with the assistance of an experienced attorney. Making sure that your family's inheritances escape this expensive probate process is another benefit of estate planning.
Combined Families
Blended families can be a supportive and healthy family structure for all members, despite the special problems they bring. Two responsible adults provide children with role models. Siblings learn to accept variations in their relationships with one another, and parents frequently get access to a wider network of financial assistance.
Before moving in together, it's crucial to have a conversation about parenting philosophies with your new spouse to ensure that you both understand the expectations and standards for the home. This avoids future misunderstandings. Reviewing the beneficiaries on bank accounts, real estate contracts, life insurance policies, and retirement assets is also crucial to ensure that they accurately represent your family structure. This reduces taxes and helps to prevent confusion.
Taxes
You want to be in charge of who inherits your property after you pass away. It's likely that you also want your beneficiaries to get what they require at the lowest possible tax, legal, and court expense burden, as well as when and when they need it.
Estate planning must take taxes into account, particularly for the rich. An estate's value is decreased before beneficiaries receive their share due to the federal estate tax and any applicable state death taxes. Credit bypass trusts, disclaimers, QTIP forms of marital trust for the surviving spouse, and irrevocable life insurance trusts are common vehicles for reducing these taxes.
During post-death administration, real estate, closely-held commercial interests, and the growing class of special assets frequently present particular challenges that call for expert care. An experienced estate planning lawyer can answer these questions.
