The primary obstacle in which estate owners wish to avoid is family disputes. The most effective way to avoid these hassles and unnecessary occurrences is to create an estate plan. In these plans, the estate owner creates several provisions including producing a will to define how their estate is divided.
Who Inherits from the Estate
Producing a will eliminates the guesswork. It states directly how the estate owner wants their property distributed. The estate owner adds provisions for their will if they need to control aspects of this distribution. For example, if they wish to leave a property to their child, they could add provisions that prevent a spouse from taking the property during a divorce. To create a will, contact an estate planning attorney in Rockford, Il today.
The Terms of a Living Will
A living will identifies whether or not the estate owner wishes to acquire life-saving treatment in certain situations. This includes concepts such as life support. The estate owner creates a living will to prevent their family from facing these decisions on their own.
A Medical Directive and Power of Attorney
A medical directive is created to outline the care plan for the estate owner. This directive determines what doctor will provide their care. It could also contact a power of attorney to identify a family member who will make care-related decisions on their behalf.
The power of attorney may impose restrictions. This could include how the identified authority uses their property and assets. The restrictions could require the family member to provide receipts to an administrator of the estate.
Reducing Tax Implications
Inheritance tax is imposed on all financial assets and property that is inherited. To reduce these taxes, the estate owner could remove these assets from their estate. By identifying a new owner, they reduce the total taxes paid by their family.
Estate planning opens the door to many opportunities for property owners. These options allow the estate owner to take control over their assets and distribute them according to their own desires. To learn more about these concepts, contact Crosby Law Firm today.
