Estate Planning: So you can decide who will inherit your assets

Wed, 13 Aug 2008 11:52:40 EST

Estate planning is theprocess of deciding how to effectively transfer your assets, at death, and duringyour lifetime. Without proper EstatePlanning you could unnecessarily lose a sizable portion of your estate totaxes. While avoiding taxes is an obvious reason for Estate Planning, a moreimportant reason may be in its ability to allow you to direct the transfer ofyour assets after death.

If you have an old Will, it may be timefor an upgrade.

Once executed, your will should be updated regularly, especially under these circumstances: A birth, marriage or divorce in the family; a move to another state; a change in taxlaws; a change in the status of dependent children; impending retirement; or achange in personal circumstances or needs.

An out-of-date will can be more trouble thanhaving no will at all. Consider a situation involving a man who executed a willin 2001, giving $10,000 to a woman he named as a "friend." A yearlater, the man and woman get married. The man dies in 2004. Unfortunately, the man never updated his will. Ather husband's death, the woman claimed her elective share as a wife (one-thirdof the total estate) rather than abiding by the terms of the will. The man'schildren from his first marriage objected. The court could decide that the survivingspouse is limed to $10,000.00 from the estate.

The following is 10 life changes that have the potential to affect your estateand would indicate the need for a revised Will:

Births
Marriage or divorce-yours or one of your children's
The death or incapacity of a named beneficiary in your will
Changes in your personal net worth
Change of your needs or your beneficiaries' needs
Change of residence-Do you now live in a different state? Check the laws of that state.
Changes in the tax law
Change of personal representative of your estate or guardian of dependents under your care
New charitable interests
Retirement

What Happens If You Die without a Will?
If you don't have a valid will, the statewhere you are domiciled (i.e., the state in which you live most of the time,vote, have your driver's license) will decide what happens to your assets. For example, in Georgia, if you die leaving asurviving spouse and two children, and no will, the surviving spouse does notinherit the estate.

Planning for Your Will.

If you are married or single, if you havechildren or relatives, you need a will. Ifyou have charitable causes you want to help perpetuate, you need a will. If youown a home or have a bank account, stocks or any other kind of property, youneed a will.

Having your will prepared by an attorney andexecuted according to state guidelines is essential. Several steps arenecessary for a will to be legal.

It should be in writing.
It should be signed by the one creating the will.
It should be acknowledged to be the will of the person who signs it.
It should be dated.

People who are not beneficiaries of the willmust witness the signature of the person who creates the will. They must also signit as witnesses. Also, if a will isnotarized by a third witness it makes the process of probating the Will mucheasier.

Kevin J. Pratt

Attorney At Law

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Estate Planning: So you can decide who will inherit your assets