Archive for the ‘Estate-Plan-Trusts’ Category

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The Inevitable: Writing A Will

Friday, July 10th, 2009
by Jason Klatham

If you have just reached 18 it doesn’t necessarily mean that you need to prepare a will by law. It only means that you are eligible to be writing a will indicating the beneficiaries of your estates. Then again, you may be too young to own a lot of properties or have a considerable amount of money that can prompt you to write a will. Nonetheless, if you are actually a sole heir of a large estate or if you are one of those techno geek teenagers who have done magnificently in online businesses, then prepare your last will and testament accordingly.

Reaching the legal age means a lot of things for young adults. Not only can they have additional privileges in the community, they are now also protected from illegal elements who are eyeing at getting their wealth by force. Having a will, serves as a protection for anyone who thinks of the future of their family and loved ones.

If you want to designate your properties to certain people, then you must prepare a will to make the transfer legal upon your death. A legal document, like a last will and testament, which is commonly a typewritten document, can assure you that all your assets will be distributed according to your wishes and that the one who will execute the will can be trusted.

Most people are familiar with the written will which designates an executor and lists down all the properties of the deceased to be distributed to the heirs. Since it is a legal document all the entities written down should have their proper identification. The name of the beneficiaries should be their legal names and so on. And to prove that the testator is sane and is mentally sound during the preparation of the will, he or she should clearly write down that condition to erase doubts that there are outside forces influencing his or her judgment.

The first part of the testament must include the details as to how you want your funeral to be handled. Usually, the spouse takes on this role automatically or any first degree relatives close to the deceased. If the departed is not married, he or she can also assign a partner to take care of this.

Following this portion is the naming of the guardian of your children especially if there are simultaneous deaths of parents or if you are a widow. The next aspect is the details of the beneficiaries. Usually, it is the spouse who inherits the properties but if this is not applicable then you can make other assignments for your properties.

And lastly, the signatures of the witnesses who will attest that you are indeed the one who created the testament and your signature. Your witnesses cannot be your beneficiaries. You can also have it notarized.

Writing a will is not a document mocking your mortality. It is a valid testament that will matter most to your family in case of an untimely death.

About the Author:
The type of Texas Will you create can make a big difference on whether or not it is hard to write your own will.

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The Importance Of Crafting A Good Will

Monday, July 6th, 2009
by Sherry Hill

No matter how much money you have it is important to have a basic estate plan to protect your family and your assets after your death. An estate plan can be as simple as a last will and testament to extremely detailed to contain a power of attorney, a living will and even a trust. We’ll cover each of these tools in order.

A will is the first place to start your estate plan. You need to create a list of all of your assets and determine who you would like to receive those assets after your death. Your will is the legal document that lists your assets and who is to receive them. When drafting your will pay special attention to the probate laws of Texas to ensure that your will can be validated in probate court. If your will is disallowed then your property will be distributed without your will and according to Texas probate law. This is not something you want to take the chance of messing up so enlisting the aid of an estate planning attorney is a smart move. They can usually assist you for a reasonable fee.

Your will establishes your wishes with respect to your property, but what if you become incapacitated and can’t direct others as to your wishes? This is where powers of attorney come in to play. A power of attorney authorizes someone else to act on your behalf in business and legal affairs. A durable power of attorney allows another party to act on your behalf if you become incapacitated and are not capable of making decisions on your own. A health care power of attorney is a durable power of attorney that is specific to health care situations.

A living will goes hand in hand with a medical power of attorney. A living will states your intentions regarding health care if you are not capable in do so for yourself due to a future incapacity. The living will states WHAT you want done in specific situations and the health care power of attorney authorizes somebody to follow through on your wishes. These two documents are complicated enough that most are crafted by professional estate attorneys.

Trusts - Trusts are legal devices that let you place restrictions on how and when your assets will be distributed upon your death. A great example of establishing a trust is if you want to leave assets to your minor children. You can place those assets in trust and limit the asset dispersal schedule to future ages or events that you deem appropriate. Trusts can also be used as a tax planning device to allow your assets to be transfer by a different path.

There are also significant ways to manage taxes at your time of death. Some of the many tools available to do this include a wide array of trusts (life insurance, remainder, personal residence, etc) and life insurance policies that pay directly to the beneficiary upon death. These vehicles are at the more complicated end of the estate planning spectrum.

Now that you a familiar with some of the estate planning tools available, it is time to start your estate planning process. Step number one is to list out all of your assets whether held just by you or jointly with your spouse. With that list in hand go through every item and choose who should receive each item upon your death. You should also note and items or recipients that you would like to place restrictions or requirements upon. Now it is time to decide if you are going to try and create your estate plan on your own or with the help of a professional.

Estate planning can seem like a daunting undertaking, but knowing that it is very important and taking it one step at a time will help you complete the process. Hiring professionals to help you in the process is also extremely helpful and highly encouraged.

About the Author:
The type of Texas Will you write can make a big difference on whether or not it is easy to write your own will.

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Who Will Claim The Superannuation?

Wednesday, May 6th, 2009
by Klublok Chung

Superannuation means a long-standing saving and investment to provide you with a pension or a big sum of money when you stop working. Your superannuation can be saved from over a long period of your employment and it is contributed by your employer to your superannuation fund. It is especially formulated for your retirement period. It is the duty of your employer to pay a contribution on your behalf to a superannuation fund. People mostly start superannuation when they begin working. Even a self-employed can also choose to manage the funds from their own pocket.

Everyone should think about future by saving money in the form of superannuation. According to the implication of the Government, the future retirees will receive a much lower pension than those of the past employees. This means that all have to save money for the security as there is less and less prospect from the Government after retirement.

Your long period of employment can save you a significant asset. It is quite sure that you will definitely get benefit from saving regularly over many years. Your superannuation provide you with a big sum by doing the job of saving finance for you by investing them and as a result, your money is generally taxed more lightly than other forms of investment. You can also avail the opportunity of life insurance cover and disability insurance from the superannuation fund. It can be said about superannuation that it is probably the best way to save for retirement. It also makes provision for people to save using the incentives that have been provided by the Government, such as tax treatment etc.

Superannuation also gives the death benefit. But there is a question after your death who will receive your superannuation. The answer to the question is that the trustee of your fund must normally pay your death benefit to one or more of your dependants or your estate. Your superannuation can be paid either to your ‘dependants’ or to your estate. Your dependants consist of your spouse, your children and ‘other persons’ who are financially dependent on you. In regard to ‘other person’s’, fund, trustees must undergo verification that the relationship involved financial dependency.

Most funds let you suggest whom do you want your death benefit to be paid to, either as a ‘non-binding’ or ‘binding’ nomination. A ‘non-binding nomination’ is that which just guides the trustee, especially when you nominate someone who doesn’t depend on you. The trustee does not need to follow the instructions in your will. A ‘binding nomination’ will bind the trustee, and lets you name: 1. A dependant, or 2. Your ‘legal personal representative’, who must hand out your benefit according to your will.

It is recommended to keep the nominations up to date, especially if you have children or remarry. You need to update or confirm these nominations every 3 years. Many people are involved in several relationships where financial support is concerned, e.g., an existing wife or husband, young children, adult children from a previous marriage, or a sick relative who is to be taken care of at home. In these complex situations, the trustee should clearly refer to a person’s name as nominee who can take care of the funds and his family in a responsible way.

About the Author:
Choosing a testamentary trust for your estate is essential as it ensures the safety of your assets. Klublok Chung an estate planning specialist in Australia presents http://www.klublok.com which will safeguard your estate and write a will for FREE.

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