An effective estate plan provides protection for the estate planner and the estate planner's loved ones, family and friends. Because of this, estate planners should know what documents to include in their estate plan.
Preserving one's legacy and ensuring their assets are distributed in the manner they want are often the driving force for Pennsylvania residents to draft wills. Having completed the task, they most likely don't give it another thought, and very likely do not utilize other estate planning tools. What many fail to realize is that their will might get tangled in probate for a long time, tying up the estate and resulting in legal fees. It is possible, however, to protect loved ones from probate, if proper estate planning is carried out.
While it is true that thinking about one's estate plan is not fun, not everything in life is fun. To justify the delay in creating an estate plan, people tell themselves lots of lies, such as talking about one's death only makes it more imminent. However, dying without a will can leave loved ones confused on how to handle everything from the good china to the funeral.
Realizing the importance of creating an estate plan is just the first step to ensuring one's loved ones are taken care of in the future. Pennsylvania residents should know that while their estate plan is unique to their situation, there are still a number of mistakes that can negatively impact the distribution of their assets after they are gone.
People who do not have children or close family members often think that there is no need to engage in estate planning-their assets will go to their spouse and they do not have to prepare any other documents. However, estate planning encompasses more than just a will and testament-there are other events that should be covered in one's plans, situations that anyone can find themselves in.
Creating a will and an estate plan is just the first step in ensuring one's assets are distributed according to their wishes after their demise. To make sure that it takes into account changes in laws and life situations, it should be revisited every couple of years. As relationship and health changes, so do our wishes as to how our heirs inherit and what, but Pennsylvania residents often forget to update their estate plans accordingly. As the new year inches forward, one of the resolutions individuals should make is to review their estate plans and their life plans.
When a Pennsylvania resident is going through a divorce, it can sometimes be hard to think pragmatically. Divorce is a very emotional time, and often, a person's thoughts are wrapped up in divorce legal issues such as child custody and property division. However, if one is going through a divorce, they will also want to think about their estate planning needs as well.
When a married couple in Franklin creates their estate plan, they do so thinking they will live out the rest of their lives in wedded bliss. However, for any number of reasons, a married couple may end up divorcing. During the divorce process, their thoughts will be consumed with divorce legal issues. But, a divorce is a good time to also think of estate planning, and how key documents may need to be changed.
There are many reasons to update an estate plan. One particularly relevant is the recent passage of the Tax Cuts and Jobs Act. This new law resulted in an overhaul of the tax system that could impact an estate plan in a number of ways.