| How to Plan Your Estate, Part 1 |
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Most of us need not worry about estate taxes. Instead, it may be best to focus on the basics of estate planning. It takes only a few steps (and the help of qualified legal counsel) to make life easier for those who have to make important decisions when we can't speak for ourselves. Buy a trust only if you need one. A trust can be used as an alternative to a will and other estate planning tools. But trusts can be costly to set up, and may require frequent revision. Many trusts (especially living trusts) are sold to people who don't actually need them. Whether or not you need a trust can be a matter of opinion, depending on many factors. If a trust is recommended to you, be sure you clearly understand and agree with the need for it, especially if it's suggested as a replacement for having a simple will. Have your will made or updated. If you die without a will, a probate court cannot acknowledge your wishes (even if you wrote them in some other form) and would have to distribute your assets as set forth by law. If you care about what happens to your property when you die, make a willor have your existing will updatedto reflect your wishes. Get legal help to prepare your will. While stationery store forms and computer programs claim to make wills that are legal in every state, experience shows that courts won't always recognize them. For a document as important as this, do you really want to use the cut-rate option and risk your wishes not being honored? Review your will every two years (or sooner if you have a major change in your life) and revise it as often as necessary. The beauty of a typical will is that it has absolutely no meaning until you die, and then becomes so ironclad at your passing that it will thereafter be enforced by a court of law. Don't hesitate to change your will if circumstances in your life call for it. |
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