BackEstate Planning for the Beginner
Article submitted by Tamra Waltemath. She can be reached at 303 657-0360.
Many clients come to my office and they want to know "what is estate planning?"
Estate planning is a process in which an attorney helps a client to decide how to leave their assets at their death to their beneficiaries by taking into account the laws of wills, taxes, insurance, property and trusts to maximize the benefit of all laws to carry out the wishes of the client. To make an estate plan you need to know what your assets are and who you want to leave them to. An attorney will need this basic information to help you devise a plan. A good plan will guarantee that your assets will be transferred to your beneficiaries in a timely manner with minimal costs.
An estate plan may include a will, and or a trust as well as arranging your assets to transfer them to your beneficiaries without using a will or trust. For example, you could designate a person to receive your bank accounts immediately upon your death by making a "payable on death" or transfer on death" designation at the bank. You could name beneficiaries on life insurance policies and retirement plans which enable your beneficiaries to receive these assets upon presentation of a death certificate. You may transfer real estate upon your death by utilizing a "beneficiary deed." And of course, you may place assets in a living trust which enables your trustee to transfer your assets to your beneficiaries at death, without probate.
Sometimes, you may not want to avoid probate and you can plan for this as well. There are some advantages to probate which include court supervision and a shorter time period for creditors to make claims against your estate. Probate is a court procedure in which a will is proved to be valid or invalid and a personal representative is appointed to transfer your assets to your beneficiaries or heirs. The court administers your estate by requiring the personal representative to report to the court and obtain court approval to close your estate. When beneficiaries are disputing the transfer of assets and or there are creditor's claims, it may be helpful and necessary to involve the courts. There is not one estate plan that fits all, so it is advantageous to consult an attorney who has experience in this area for advice.