When it comes time to plan in the event of your demise, there are certain estate planning tools that you are going to want to have. These tools are imperative to have, because you never know what could happen. We are not invincible, and you can never be too young to plan your estate.
Estate planning attempts to eliminate any uncertainties over the administration of probate, which is the official proving of a will. The probate also officially appoints a person as the executor, or personal representative. This is generally named in the will, and has the power to dispose of the assets of the testator in the manner that the will specifies.
An estate planner can have several different credentials, which include Trust and Estate Practitioner, Chartered Financial Analyst, Certified Financial Planner and Chartered Trust and Estate Planner. These individuals will advise you to get certain estate planning tools, and will assist you in processes like the set up of trusts, which set up certain provisions for how minor children or developmentally disabled children will be distributed funds.
Here are three vital estate planning tools that a probate law attorney or estate planning firms will advise you to get!
1. A Will.
A will, in case there was any prior confusion, are instructions for the distribution of your assets after you die. A will is good because it allows you to decide how you want your estate to be distributed. If you die without a will, your estate will be distributed according to the laws of your state. This is definitely the most important of all estate planning tools.
2. Power of Attorney.
A power of attorney is a person you designate to access and control your financial assets in the event of an emergency, like for example if you fall into a coma or become lost. Cases like Terry Schiavo have made the power of attorney another essential of the estate planning tools.
3. Life Insurance.
Life insurance is particularly important because it not only covers the cost of funeral expenses. It is also one of the most important estate planning tools because it covers any unexpected bills, which can keep your family from falling under the burden of debt. For example, a life insurance trust can be used to pay estate taxes because the United States tax code does not tax life insurance proceeds as income.
Hopefully that answered any questions you might have had, like “What is a probate attorney” or “what is an estate planning attorney!” However, if you have any other questions or any essential estate planning tools that you would like to add, feel free to comment! Find out more about this topic here.