Even Texans who take the necessary steps to formulate an estate plan might still sow the seeds for family disputes if the proper strategies are not implemented. Frequently, there is an issue with the division of assets and it does not have to do with their equal distribution, but their fair distribution. People who are leaving assets, property and more to their offspring will strive to be fair, however when it comes down to making the hard decision as to which child, relative or heir should receive what, more comes into the equation than just a random idea about fairness.
Posts tagged "estate planning"
The common notion of estate planning is that one needs to have significant assets or must be in their golden years. But as times change and cultures change, the traditional norms surrounding estate planning also change. Essentially, estate planning is not limited to the rich or to the elderly.
Texans who believe that time is on their side and that youth is a justification not to create wills and trusts are often caught flat-footed if something happens. Regardless of age, people need to be aware of the need to have certain documents prepared just in case of an unforeseen eventuality. Even with the newsworthy people like the musician and actor Prince who died unexpectedly and did not have a will, a vast proportion of the U.S. population still does not have a will.
Coming to grips with one's mortality is never easy, but Texans of all walks of life must do so and plan for the future. It is an unavoidable reality that the day will come when a person will no longer be there. That is when planning will come to the forefront. Having organized wills, trusts and other aspects of an estate plan is imperative. Knowing what is important is step one in cobbling together a solid plan.
Texans who are estate planning have long considered tax implications as a potential issue for heirs. The last thing that a person wants to do when crafting an estate plan is to leave the heirs with a huge tax bill. With the new presidential administration of Donald J. Trump, the estate tax - also referred to as the death tax - was a campaign issue and he asserted his intention to repeal it. Those who are crafting an estate plan should think about if and how to account for the repeal if it happens.
If you sat down today to write a list of pros and cons regarding your journey as a business owner, hopefully, your pros list would be the longer of the two. Sure, creating, launching and growing a business to success is wrought with challenge, but it can certainly be a tremendously rewarding experience as well. Whether you've owned your business for only a few years or have held the reins for decades, there's something to be said for bringing a dream to fruition and keeping it going.
The idea of drafting estate planning documents and formulating strategies for the long-range future might be something that many Texans view as the responsibility of older people. However, younger people are well-advised to be aware of the need to craft an estate plan. While many are of the belief that this is contingent on having significant assets, it is not the case. The main goal behind any estate plan is to make certain that loved ones are cared for in the event of incapacitation or death. The creation of a cogent plan does not have to be complex. Being aware of foundational issues is key.
Texans who are planning for the future when they have passed on will want to cobble together a comprehensive estate plan that will cover all the bases. However, it can be difficult to know what aspects to focus on. This is particularly true when there is a certain amount of wealth at stake. Complicated estate planning can be difficult and knowing what to pay strict attention to and what is less important are keys to the process. The following are deemed to be imperative: tax and estate planning, family communication, listening to the different perspectives, having a strong educational foundation, and creating a plan and sticking to it.
Many Houston area residents will eventually get to the point where they realize that they need to have an estate plan drafted. There are many different reasons for why people finally get to this realization; perhaps a child has been born, or the family is beginning to realize that they have accumulated significant assets. Whatever the reason, it is always a good idea to have an estate plan in place. However, when creating your estate plan, it is very important to do so carefully, and with the help of a skilled attorney. A lawyer can help you avoid the pitfalls that plague many people who try to rush or go it alone when creating a plan.
Texans might be reluctant to think about estate planning due to the realization that it pertains to his or her death. However, it is imperative to put that negative feeling aside and consider the positives of doing so. Failing to move forward with drafting estate planning documents can cause family disputes and long-term problems after death. Remembering to take certain steps can remove the pain and fear from the process and be beneficial in the long and short run.