Estate planning can be sometimes very tricky to think about. Well, it makes everyone think about their property related factors that will happen once they are alive and after they are dead. Well, it’s quite obvious that estate planning is important for everyone regardless of the age, because of the benefits it provides to every person. Estate planning attorney near me 11793 can help you with the essential tools in the estate planning process.
In this article, we will understand the basic estate planning tools, which is very much important. Also, that the management of assets is done wisely and the next generation family members will receive their inheritance without much difficulty.
Essential tools of estate planning
Nomination- ask Estate Planning Attorney Near Me 11793 for more details
Whenever you fill any bank account opening form, start investments in mutual funds, open a PPF account or buy an insurance policy, all these things require the name of the nominee. All those who fill that column space simply assume that the person whose name they have written will be the next owner of this asset in case they die.
As per the companies act, a financial product that will fall under this act, the nominee will be the next owner after the passing of the primary holder. They will have all the legal rights to decide on that financial product. For example shares, FD’S, Demat account, debenture. For other financial products decisions, a nominee is just a caretaker of the product.
A will is a legal document which states the certain conditions of distribution of wealth among your family members. You can divide only particular assets via a will that is earned or owned by you. Estate planning attorney near me 11793 prepares a will.
The format of a will is such that it will include your personal information like your name, date of birth, address. It has a declaration that you are writing this will without any pressure and with your understanding. It tells the proportion of division of assets and parties to get the assets. In the end, there is a signature of the person writing the will and the witnesses.
Succession laws- to get a clear idea contact Estate Planning Attorney Near Me 11793
In case there is no will present, the division of wealth happens as per “succession laws” which are the laws defined by the country. This is the most beneficial tool in cases where a person dies and there’s no will or any other statement is present. According to this law, the assets and estate of the respective person will be passed on to the rightful successor, which includes the children or any other deservable person.
The joint account is a type of account in which multiple persons are having the ownership of the product in this joint account system if one of the holders dies the control is still with the secondary holder.
A joint account holder is always treated as the second holder apart from the primary holder. The second holder has all the necessary control as the primary holder does, and this is how he will be the new owner in case of death of the primary holder. The only precaution in these joint account systems is you need to have high trust in the other person otherwise you can face problems in future.
Trust- To initiate the process, contact Estate Planning Attorney Near Me 11793
A trust is referred to as an agreement which is between the settlor and trustees prepared by the Estate Planning Attorney Near Me 11793. The transfer of legal ownership of the property is given to the trustee, and the trustee will perform all the works accordingly to the trust deed.
A trust mainly includes four components
- Author of the trust/settler- This is the one who is responsible for settling the trust or is the main author of the trust.
- Trustee- This is an individual or a group appointed by the settler to look after the property in the trust deed to administer the Trust.
- Beneficiary- The beneficiary is the person for whose benefit the creation of trust happens.
- Trust-property or Trust money- This is the property which is present under the trust and can comprise both movable and immovable property for ex-cash, jewellery, land, investment etc.
In this article, we have discussed all the key details of estate planning, but this information doesn’t allow you to take your estate planning decisions all by yourself. It is for your knowledge and understanding of Estate planning. Whenever you feel to do estate planning you must consult a right Estate Planning Attorney Near Me 11793. You must take care of these important tools in estate planning and work accordingly so that in future you must not face any problem.