Your Will Is The Core Of Estate Planning

An estate plan is a legal system for the disposal of your property upon your
death. It recognizes your wishes, such as those regarding the care of
minors, and it legally minimizes taxes. It can take into account your views
regarding future medical care; for example, it may state you have no wish to
have your life sustained by a life support machine. Estate planning may or
may not involve tax planning. The single most important document associated
with estate planning is a will.

If you own property, there are basic questions which need to be answered
upon your death. If these answers are not set out in the form of a will,
then the courts have the right to decide what happens to your assets. The
end result may well coincide with your wishes, but often it will not. If you
have children, then you will need to make clear your wishes about their
guardianship in the event of your untimely death. Who should inherit your
personal belongings? Do you have any special bequests? Do you have anyone
you wish to exclude from your will that would automatically inherit as a
result of the law of succession?

If you die without a will you are said to die "intestate," and others have
the right to say what happens to your assets. The value of your estate will
be substantially reduced, as professionals such as accountants and lawyers
will argue as to what the law of succession means.

Many people feel that they need to be old or wealthy to have a will.
However, this is a misconception. How does anyone know when he or she will
die? You may have wealth that you are not considering. Have you correctly
evaluated the insurance and assurance policies that you hold? Perhaps you
have intellectual property, for instance, copyrights. Or you may have latent
wealth bequeathed to you in another person's will. You need to consider all
your assets whether you are young or old, wealthy or not.

The earlier in life that you make a will, the easier it is for you to review
and change your plans. As your life evolves, the expectations change for the
different stages of your life.
Death for the survivors is a traumatic, emotional experience, but a will
makes it easier to cope. Wills are a valid legal document, but they are not
written in stone. Circumstances change during the course of your life, and a
codicil can be added to a will to reflect your changes.

Once you have your will, it is possible to make decisions regarding other
matters, in particular, trust funds, taxes, and the costs of probate.
Probate oversees the transfer of your assets. Probate is the legal process
of proving a will, appointing an executor, and settling you estate according
to your wishes; but by custom, it has come to be understood as the legal
process whereby a dead person's estate is administered and distributed.
Probate costs and taxes can diminish the assets passed on to your
beneficiaries. You may want to consider setting up trusts to minimize your
probate costs and tax liabilities in order to maximize your bequeathed
assets. Trusts can avoid probate, but they also can be used as an instrument
to transfer assets while you are still alive.

Whether you want just a simple will or a will, codicils, and trusts, the
time to plan the disposal of your estate is now. It is a mistake to delay
your estate planning in this uncertain world. Take care of your planning now
to assert and safeguard your own decisions about your assets.

About The Author: Catherine Ford is a freelance writer for ASeniorHaven.com,
a site with information on senior finances
http://www.aseniorhaven.com/finances.php and other interests of seniors.
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