You took the time to invest and save so that you could pass on an inheritance to your children. Today, your biggest concern may no longer be growing those assets. Instead, you may be focused on making sure they're protected against taxes and other losses.
A person's will outlines what they want to happen with their assets when they pass away. This is often done in conjunction with trusts to ensure that things get to the correct beneficiary in a timely manner. Many people who are creating a will choose to discuss the terms of the plan with the heirs. Sometimes, there are changes that will be necessary due to changes in the person's wishes or changes in circumstances.
Putting together your estate plan is never easy. Naturally, one of the most difficult things in creating an estate plan is dolling out the inheritance to your beneficiaries.
Many children have expectations regarding what they will get from their parents when they pass away. One major cause of estate disputes between heirs and beneficiaries is when these expectations are not met.
The singer, Aretha Franklin, did not leave a will behind as a guide to distribute her estate assets. The singer's $80 million estate, which will probably be divided among her four sons will need to be probated according to intestate laws of her home state of Michigan. Her four sons have already filed the appropriate legal paperwork to lay claim to their late mother's estate.
As we discussed in a recent post, three children of country music legend Glen Campbell filed a lawsuit to invalidate the singer's two most recent wills. Their claim was, essentially, that their father was not of sound mind due to Alzheimer's disease when he drafted the wills.
Three children of deceased country music legend Glen Campbell are pursuing legal action to contest two of the singer's wills. The children, who were excluded from two wills, may have the right to receive inheritances if their attempts to invalidate the wills are honored.
Imagine you have an 18-year-old child, and you have $3 million in your retirement account. You know that your 18-year-old isn't ready to handle this amount of assets, but you also want your child to receive the money if you unexpectedly pass away. One way to handle this issue allows you to safeguard your assets from being spent irresponsibly while still permitting your son or daughter to benefit from them. The strategy involves the use of a spendthrift trust.
The idea that someone would pass away without a will is not very far-fetched. In some cases, especially when the decedent's estate doesn't have a lot of personal assets or only has one or two potential heirs, legal proceedings for an estate without a will concludes without a hitch. In other cases, when the decedent's estate is large and includes many potential creditors and heirs, the estate can be complicated and time-consuming to resolve.
Everyone needs an estate plan – even people who don't have any personal assets. This is because estate plans cover more than just financial concerns. An estate plan will designate who will care for your children in the event of your incapacitation or death. For that matter, an estate plan will also establish who will care for you – with regard to your medical and financial decisions – if you're too ill or injured to make such decisions for yourself.