Many individuals in Texas and other states are making the mistake of overlooking their assets simply because they do not think they have any. In reality, estate planning is important for all individuals no matter how few or many assets they have. Even a young child who has a custodial account has an estate. Likewise, a teenage girl who has received a piece of jewelry from her grandmother has an estate.
Posts tagged "estate planning"
Estate planning is something that people in Texas, including business people, often put off until they absolutely have to do it. Unfortunately, sometimes they wait until it is too late to do estate planning. For business people, this means a business might not make it to the family's next generation.
The most challenging part of deciding how assets will be distributed following one's death is trying to understand the documentation and terminology related to estate planning. Unfortunately, a lack of understanding can easily cause a person and his or her family to be unprepared in the event of the person's incapacitation or death. A few tips may help people in Texas to complete comprehensive estate planning effectively.
When it comes to juggling all of a person's modern-day responsibilities in Texas, making plans that affect one's final wishes often end up low on the priority list. Part of the reason for this is because people prefer not to discuss the possibility of death. Another reason is that people consider it to be too complicated of a process. With legal guidance, however, people can complete estate planning and also keep their plans updated.
Whether a person is rich or poor, he or she can benefit from an estate plan. Unfortunately, research shows that 64 percent of people in the United States, including Texas, have not created estate planning documents. This can pose major problems for their surviving loved ones when they die.
People may automatically think that creating wills is necessary only for those who are wealthy. In reality, estate planning is essential for people of all income levels in Texas and other states. If a person has any personal property, which includes a bank account and a home, he or she qualities.
Although planning for one's death is generally not an appealing activity for individuals in Texas and other states, creating an estate plan is essential for protecting one's assets in the event of one's death. Unfortunately, sometimes people do not create estate plans, or even if they do engage in estate planning, they make some costly mistakes. A couple of tips may help Texas residents with estate planning.
Estate planning is often avoided simply because it is understandably not enjoyable to discuss the topic of death. However, not engaging in estate planning in Texas may mean one's assets will not be passed down to loved ones according to one's wishes. It may also mean one's kids will fight over the money left behind.
When a person spends several years of his or her life building a business in Texas, all of his or her hard work can end up falling apart if he or she dies prematurely and has failed to do engage in estate planning. If the business is worth a million dollars, for example, an estate or death tax can be slapped on the business, thus reducing the company's worth by half. Then, ex-spouses, family members and co-owners may fight to get a piece of the business, essentially causing the business to go to zero equity. Estate planning may help to prevent this from happening.
Estate planning is not usually high up on anyone's "to-do" list. After all, Texans naturally prefer to live in the moment and enjoy life rather than talk about death and illness. Nevertheless, estate planning is essential for making sure that one's wishes are met in the event of an unexpected incapacitation or death.