Estate planning is the preparation of tasks that have the purpose of managing the asset base of a person in case of incapacity or death. Planning includes tying property to heirs and settling property taxes. Most estate planning is done with the help of a lawyer with experience in this particular law field.
Understanding real estate planning
Real estate planning entails determining how a person’s assets will be kept, administered, and distributed after death. It also considers managing a person’s financial obligations and properties if they become incapacitated.
Assets that could be the property of a person include houses, cars, stocks, works of art, life insurance, pensions and debts. People typically have many different reasons for planning an estate – preserving family wealth, securing a surviving spouse and children, funding the education of children or grandchildren, or leaving the inheritance behind a charitable cause.
According to an estate attorney Denver residents near me recommend, the most basic thing to do when it comes to estate planning is to draw up a will. Other major tasks include:
- Limitation of property taxes by establishing fiduciary accounts on behalf of beneficiaries
- Naming a guardian for dependents
- Appointment of an estate executor, to supervise the conditions of the will
- Creating or updating beneficiaries in plans such as life insurance, IRA and 401(k) s
- Making funeral arrangements
- Establishing annual gifts to charitable and non-profit organizations, qualified to reduce taxable assets
- Creating a sustainable POA, to direct other investments and assets
Why you need a lawyer in the estate planning process
Lawyers specialized in estate planning are very helpful during the entire process planning, and later throughout the trial process. They understand the state and federal laws that will affect your property. This means that an estate planning attorney can not only describe you the different options available, but also ensure that your wishes are not overlooked, but fulfilled in accordance with the law. Therefore, a real estate plan should follow state guidelines to avoid further problems and expenses.
An estate planning lawyer can also be used to guide anyone who has a power of attorney on the estate of a recently deceased person, through the court process.
In fact, a good lawyer can help you avoid the court completely, but much of this depends on the type of estate of the deceased person and how the transfer is legally allowed.
What does an estate planning lawyer do?
Real estate planning does not begin or end with a will.
A lawyer specializing in this area will also draw up life trusts, develop a plan to mitigate or avoid inheritance taxes, and ensure that the savings and assets in your life are safe from your beneficiary’s creditors, after your death.
They can prepare a power of attorney and health care guidance that allows someone to take care of your chores, if you ever become mentally incompetent. They can help you avoid guardianship or guardianship issues, if you need someone else to handle your chores.
Estate planning lawyers commonly charge a flat fee for writing mandatory legal documents (wills and POAs). They can also be hired part-time, to help you manage your legal operations, and act on your behalf to manage disputes, when they arise.