A top reason people take part in estate planning and write a will with careful consideration centers on caring for family members. A person with significant assets likely doesn’t want to see creditors and tax agencies take a substantial portion of the assets. However, settling legitimate obligations is a part of the probate process. That said, a will valid under Connecticut law could cover steps to best care for surviving family members after one’s passing.
Devising a will to help family members
U.S. tax law currently provides a multi-million dollar exemption amount for estates. Those worried about their beneficiaries paying taxes may wish to take advantage of annual tax-free gift rules. Giving each child the maximum gift amount each year could cut down on future taxes on inheritances. That’s one common way to help beneficiaries. Additional ideas could work, too.
Other “unique considerations” may come into play. Not everyone relative may embrace financial responsibility. Worries could exist that the relative will spend all the money left to him or her almost immediately. Perhaps writing the will or trust so that this particular relative only receives a set amount of money per year for ten years might work. While the beneficiary may not appreciate the decision, the results could deliver the best results.
Setting up a trust could help those interested in creating more oversight of estate distribution. Working with an attorney to devise an appropriate trust could increase the chances heirs get the maximum benefit from an estate’s distribution.
Exploring the fundamentals of estate planning
Some estate planning steps may involve complicated matters, such as the sale of a business or the distribution of rare antiques. In general, those who follow basic steps could help their family members keep most of their money.
Those who haven’t yet devised a will might need to take immediate steps to write one with an attorney. Otherwise, intestate rules may guide matters and, possibly, not to someone’s initial wishes.
An attorney could also draw up a power of attorney contract, a living will, a healthcare proxy, and other documents. A comprehensive estate plan could help family members immensely.