With good estate planning, people can ensure that their final wishes are followed and that their possessions go to the right recipients after death. However, many have questions about the process. Below are some key terms to learn, as well as some basic information on estate planning.
Estate Planning Terminology
As the estate planning process begins, one may encounter some unfamiliar terminology. The list below isn’t complete, but it will give a basic understanding of common terms.
1. An estate is everything a person owns, such as their home, vehicles, jewelry, and businesses.
2. Estate planning is the making of arrangements for an estate in the event of an owner’s death or incapacity. Last wills, trusts, and living wills can all be included in an estate plan.
3. Wills come in two types. The last will gives instructions for the estate after death, while a living will outline a person’s medical care wishes if they cannot make their own decisions.
4. Trusts can also take multiple forms. Most clients use them to avoid probate court and minimize tax liability.
5. Estate taxes are those levied on belongings after a person’s death, but they’re a concern mostly for the wealthy.
6. Probate is the validation of the last will. The executor’s job is to ensure that the person’s wishes are followed, and they may have to document the value of the estate.
What’s Involved in Estate Planning
An estate plan should include factors such as inheritances, life insurance, and end-of-life care. Arrangements for end-of-life care should be included in a living will, and inheritances should be carefully considered. Every jurisdiction has unique estate planning laws, and if paperwork isn’t done properly, a person’s assets may not go to the intended recipient. A life insurance policy can help heirs cover estate taxes or pay a person’s final expenses.
Hire an Estate Planning Attorney
In some cases, it is possible to handle estate planning without the help of an Estate Law Lawyer in Bel Air MD, through DIY documents. However, clients are advised to Visit the website to consult an attorney who knows local regulations. An Estate Law Lawyer in Bel Air MD can evaluate estate documents to ensure all relevant details are included. Even for the non-wealthy, estate planning gives peace of mind–and assistance.