Estate planning is planning how to manage properties and securing properties of an individual in the event of his incapacitation and death. Or planning for how an individual’s assets will be preserved, managed, and distributed after death. The management of an individual’s properties and financial obligations in the event that s/he becomes incapacitated the planning includes the bequest of assets to heirs and the settlement of estate taxes and writing will. Estate plans are set up with the help of an attorney experienced in estate law.
1) preserving family wealth,
2) providing for surviving spouse and children,
3) funding children and/or grandchildren’s education, or
4) leaving their legacy behind to a charitable cause
Before the death, an individual can writ Will which is a legal document for distributing his Estate according to his wish written/ fulfilling of his intentions. A probate is the first step taken in administering the estate of a deceased person and distributing assets to the beneficiaries. A person appointed by court will be responsible for locating and overseeing all the assets who is a legal person called as representative or executor. He should estimated value of estate. The executor is also responsible for filing the final personal income tax returns on behalf of the deceased .The will should be taken to probate or executor named in will within 30 days of death of testator. Probate is court proceeding, it will appoint executor as per will and gives power to act behalf of deceased. The executor also has to pay off any taxes and debt owed by the deceased from the estate. creditor should claim estate for the money he owed to them within limited amount of time from the date they were notified of the testator’s death, probate judge will say whether the claim is valid or not. Estate planning is very much important for everyone not just wealthy. If no estate planning, then the family and relatives spends their whole life fighting over your assets. It is necessary for ensuring your assets ends up where you want them without interference of third parties.