Problems Solved with Proper Estate Planning

By Daniel Powell

There are many problems that can be solved by proper estate planning. One important issue is probate problems. If the minimum of a will is not put into place, that state will not be able to determine your intentions of the rightful heirs and the portion that each will receive. In this case, the state will decide on who receives what and how much through their procedures. Probate is also a timely process and can be very expensive for the heirs, so setting up a will can solve this problem which has the ability to become very large. Another way to avoid probate problems is to choose joint tenancy with rights of survivorship as a method of holding title to both real estate and financial assets. In the case of death, the surviving owner will receive interest in the property without having to deal with probate.

Besides the above problems, estate planning can also solve problems for unmarried couples. When it comes to unmarried couples, they do not enjoy the same legal protections that married couples do. In the case of death, if there is no beneficiary designation or a will, your partner will most likely not benefit. By naming a beneficiary or having a will in place, your account will not have to go through probate. Let us assume that you have a home that you want yout unmarried partner to receive in the case of your death. If you were to die and not name them anywhere, then this property would most likely not go to them. However, if you were to add an unmarried partner to the home’s title as a joint tenant with the right of survivorship, this will help to ensure the partner will inherit the home if you die, also avoiding probate.

Another problem that occurs even after a plan is established is not reviewing the plan on a regular basis. People’s lives change and your plan needs to be comprehensive enough to deal with these changes. Suppose for example you leave just enough money behind to cover your funeral expenses and then you win the lottery. Suppose you soon become deceased and there is no plan in place for where these funds are to go. If no plans are in place for disbursement of these funds, the money could be subject to tax and it could be a rather long process to decide how the money is to be divided. The main point to remember is to constantly update your plan including your will, so everything is clear and easy to deal with when your time comes.

View the original articles here:
http://www.lawcore.com/estate-planning/common-estate-planning-problems.html
http://www.legalhelpmate.com/news/living-trust-article-3.aspx
http://www.latimes.com/business/investing/la-estate-story3,1,5196140.story