Don't Let Strangers Make Your Final Decisions
Many people would shudder at the thought of leaving important last wishes to strangers, but that may happen if they don't have a valid will or other estate documents. Read on for a primer on what to consider when deciding how you want your estate to handled after your death.
Wills and Trusts: What to Know
Some get confused about the above two important estate-planning instruments. You cannot go wrong if you use at least one of the above to makes things clear after your death. If you leave behind both a trust and will, the trust instructions will likely override those of your will. If you don't leave either a trust or a will behind, however, the probate court will take over and provide your loved ones with what the probate judge thinks is fair. Since people most often use a will to leave assets to loved ones, the below information is based on probate law. These laws vary from state to state so be sure to speak to a probate lawyer for guidance in your location.
What Is An Estate?
Everything you own at the time of your death comprises your estate. It also includes your debts, however. Many debts don't have to paid (ever) but many do. Key among those are tax debts, which always have to be paid. Other than debts, an estate can include the following:
- Homes
- Vehicles including boats, recreational vehicles, and more.
- Financial accounts like checking, savings, investment, etc.
- Art, collectibles, and jewelry
- Furniture
What to Consider About Beneficiaries
Within reason, you are free to leave whatever you wish to whoever you wish. Keep these things in mind, though:
- In most states, you cannot prevent your spouse from inheriting the home if they are still living in it. In some states, though, you can leave your spouse out of the deal.
- You can either provide specific instructions or general instructions. For example, you may just let your survivors evenly divide your estate as they see fit. You can also specify that a certain loved one should inherit a certain asset.
- Pets are considered property and not beneficiaries. You can, however, leave your pet to a loved one with instructions and funds to see to their care.
- Children under the age of 18 cannot receive an inheritance unless you specify a trust and trustee to administer the funds to them.
Speak to a probate attorney to find out more about making good plans for your estate.
Share