Are you a business owner wondering how to go about planning your estate? If yes, then this article gives you useful insight on how to go through the process without much of a hassle. It is important to let your family enjoy some peace of mind devoid of the nagging worries on how to subdivide your estate once you are gone.
The best way to ensure that you don’t lose any of your property and that your family inherits your assets is to have a clear plan. Estate planning requires a lot of legal knowledge, and it is, therefore, necessary to entrust the process to a qualified lawyer who understands the nitty-gritty of the entire process. Don’t let your family in destitution or let years of hard work go to waste. Estate planning can be a daunting task but one that is worthwhile in the long run.
Your estate plan or living trust is where you state your succession plans. This action plan tells company executives exactly what to do when you are incapacitated or deceased. Its purpose is to assure that your business continues to run successfully without you at the helm. Appointed trustees will manage the business in accordance with the succession plan you detail in your planning for your estate.
Estate Planning Basics
A will clearly stipulate how a person wants his property to be distributed when they die. It gives you a provision of naming the guardian of your children in case they are minors. You can also state those responsible for managing and distributing your property. If you don’t draft this document when you are alive, the state takes over the management of your property once you are gone.
Different states have regulations that regulate the drafting of such documents. The law requires that when drafting this document, the person has to be in their right state of mind and that there should be witnesses present during the signing.
How it works
This legal record becomes effective only when the person drafting the document dies. Once the testator passes on, the executor takes over the administration of the decedent’s property and carries out the provisions stated in the document.
The administrator then gathers all the estate’s property, keep accounting records and pay all the outstanding debts and taxes before he can commence distributing the property to the beneficiaries of the decedent.
This document can easily be revoked any time before the testator’s death. You need a qualified lawyer when drafting such documents. Everyone needs such a document as it gives guidance that you would wish the administrator follows when you are gone. It also gives your loved one’s peace of mind in knowing that they carried out everything as you planned.
Living Trust Benefits
This document offers a lot of benefits. Almost 20% of Americans are in these trusts. Before you get into one, you need first to understand what this document is and why you need it. After that, you need to make a conscious decision to have it or not.
A living trust is a document that is legally binding. This record allows you to have full control of your business but gives you the flexibility of choosing who you want to manage and distribute your property in case you are unable to and who receives it when you die. Once you sign this document, you transfer the ownership of your assets into the trust, but you remain in full control of your property.
Give your family clarity and peace of mind.
Benefits of having a trust for your family and business assets:
By having this document, you avoid the costly and lengthy process of a probate court. This enables you not to lose family money in expensive legal proceedings.
This document protects you from the watchful eye of the public. It prevents the public from knowing how much you own, your liabilities and who inherits your property when you pass on.
Saves you money
Since it prevents you from going to a probate court, it saves you money because these processes are usually lengthy and expensive. You may end up with very limited money to divide to the beneficiaries in the absence of such a document.
Prevents anxiety when you are incapacitated
The document clearly stipulates who handles and manages your property when you are unable to do that on your own. You don’t have to worry about things not being done according to your instructions because the document allows you to put in place a trustworthy person to carry your affairs as per your desire.
Guarantees certainty and peace of mind
You get to enjoy peace of mind knowing that when you pass on, your property goes to the right people as you intended. It also protects you from the anxiety of not knowing what may happen to your property in case you are incapacitated. The document also gives your family great relief in knowing everything is carried out as you planned.
What is right for you – Will or a Living Trust?
The two documents seem similar, but they are not. In deciding which one to go for as your planning tool, it is important to know the major difference that set them apart from each other. Most small businesses will benefit from a Trust. In fact, many attorneys recommend that all businesses have Trusts to protect the business adequately.
When you draft a will, it only takes effect when you pass on. A trust, on the other hand, becomes functional even when you are still alive. A trust does not have to go through probate court proceedings. The document also allows you enjoy privacy while the will does not since it is a public document.
If you decide to go for a living trust, here is what you need to do:
Creating a trust is not as complicated as you would imagine. All you need to do is:
- Get an inventory of all your assets.
- Carefully decide who you want to manage your assets in case of incapacitation.
- Decide on who inherits your property when you pass on.
After getting answers to these pertinent questions, you are almost through with the process and can now go online and find the trust forms. You can easily get these forms on legalzoom where you have to answer a few questions before you can get started.
Planning tools are necessary for any business owner because it helps relieve anxiety and helps you afford some peace of mind. Imagine the confusion you would create if you die without a proper plan on how to distribute your property? Your hard work may not benefit your family because the government takes over the management of your property and this may affect your family.
This platform offers you an opportunity to create a plan on how to manage your property at a discount. The legal services provided in this platform give you the chance to create family trusts that enables your family enjoy peace of mind during their most stressful moments.
We have qualified lawyers who have considerable experience in this field, and their work is to assist you in forming family trusts that best suits you and your loved ones. They also offer any legal services that you may require when it comes to planning. Go ahead and ensure that you put everything in place when you can. Everything should be done according to the law to avoid the process being null and void. So, go on and protect the interest of your family by taking measures that ensure that all your assets go to the people you intended.