Educate Yourself About Law

Estate Planning Tips

by Erika Reed

Estate planning is a vital aspect of your wealth management strategy. Ideally, the intervention aims to keep your estate profitable and in the right hands once you pass away. Below is an article with some vital estate planning insights. 

The will is at the focal point of any estate plan. Ideally, the document details your end-of-life wishes and your estate division strategy. The general rule when creating wills is ensuring they are waterproof to prevent will disputes during the execution phase. So, how can you create a watertight will? First, consult a wills and estates lawyer when writing the will. They ensure that the will meets the required legal criteria in your state. For example, they ensure you are of sound mind when writing the will. If you happen to be ailing, the lawyer seeks medical documents to prove that you do not have any mental illness that could affect your judgement when writing the will. The lawyer also ensures two witnesses sign the document once it is complete. A reputable lawyer will also store your will and update it at your request.

As the best principle, you should include all your direct beneficiaries in the will. All of your children, including those born out of wedlock, are your direct beneficiaries. Therefore, it is best that you include them in the will. If you feel that some beneficiaries could contest the will on the grounds that they have inadequate provisions, include your estate division strategy in the letter of explanation. 

The executor discharges the terms of your will. Consequently, they must be a trustworthy individual willing to act in your best interests. It is advisable to have at least two executors in your will. This way, the beneficiaries do not have to move to court if the primary executor is unavailable to execute your wishes. 

Trusts are also a vital aspect of your estate plan. They help determine how beneficiaries use the funds they receive from the estate. For instance, if you set up a charitable trust, you could compel the charity to direct your funds towards a particular project. Conversely, if you create a unit or family trust, the beneficiaries' annual benefits could be used to pay their school fees or medical expenses. Your lawyer should advise you on the various types of trusts, their benefits and applications. Moreover, they should help you set the conditions of the trust to prevent disputes between the trustee and beneficiaries. 

Contact a firm such as Bale Boshev Lawyers to learn more.