Being named as an estate executor can feel a bit intimidating. It's an important job and a lot of people are counting on you to do it correctly. You may also have a lot of money on the line, especially if you are both the executor and a beneficiary.
As estate executor plays a huge role in the estate administration process after someone passes away. It's their job to do things like distributing copies of the will, paying the taxes and collecting and dividing the assets according to the testator's instructions. Essentially, while the will states what a person wants to happen with their estate, the executor is the individual who makes sure that it actually occurs.
Why do people delay their estate planning? Why do they put it off? Maybe you've done this yourself, but you don't even really know why.
When people do their estate planning as parents, they often pick guardians for their children. These individuals say that if anything happens to the parents, they will raise the children and take care of them. Of course, they hope to never have to serve in this role at all, but it gives the parents peace of mind and makes the process far easier on the kids should something happen.
Estate planning for those with a family business can get complicated. The failure rates for these businesses are very high. They face a lot of potential issues that other companies do not have, and yet, they are also significant assets that may make up most of a person's overall estate.
An educational trust is a way to leave money to a beneficiary so that they can pay for college. Often, the person who sets up the trust specifies that the only way the money can be used, at least until the student graduates, is to pay for their education.
Making a valuation on a piece of land or on any asset can be a very subjective process. The value of an asset at a particular point in time depends largely on the market forces and how the asset compares to recently sold assets on the market. As the owner of land, you may find that you receive differing valuations when you ask several parties.
If you are starting to plan your estate, you will probably think about making a will first. Wills are a great way to put your final wishes in writing and to make them legally enforceable; however, there are certain elements that need to be present in order for a will to be valid.
Surprising new research shows that unequal bequests are growing more and more common with the decades. Now, it looks like about 33 percent of parents -- one out of every three -- do not use equal distribution when leaving money and assets to their heirs.
No one wants their heirs to go through the probate process. This is because it is lengthy and because a lot of the money to be inherited needs to fund the expensive probate process. Therefore, many people in their lifetime decide to do what they can to ensure that as many of their assets as possible can avoid going through the probate process.