Estate planning refers to the process of arranging for distribution of a person’s assets after they pass away. It involves various legal tools such as wills, trusts, powers of attorney, and life insurance policies that help to ensure a person’s wishes are carried out and assets are transferred smoothly.
Estate planning law allows individuals to decide how their assets will be distributed upon their death. This includes deciding who will inherit money, personal belongings, property, and investments. It’s important to know that estate planning can minimize estate taxes and protect assets from creditors.
Legal tools used in estate planning include:
- Wills – Legal documents that specify how a person’s assets will be distributed after death.
- Living Wills – documents that provide guidance to loved ones as to actions to be taken if a person is only surviving on life support measures.
- Trusts – Arrangements where assets are managed by a trustee for the benefit of another person (the beneficiary). This allows assets to bypass probate.
- Powers of attorney – A legal document that authorizes someone to act on behalf of another person regarding finances and health care.
- Life insurance policies – Proceeds from these policies can provide funds for beneficiaries and bypass probate.
An estate plan should be updated over time as a person’s assets, family situation and tax laws change. A good estate plan can provide peace of mind for individuals and their families by ensuring assets go where they want after they pass away.
If you have any questions about estate planning, you can get in touch with Law One at (303) 831-8313. We can answer any questions about trusts and wills, power of attorney, and much more.