Wills vs Trusts
A will is a document that directs how your property should be distributed after your death. A trust is a legal arrangement in which one person (the trustee) holds legal title to property for another person (the beneficiary). The trustee manages the property for the benefit of someone else. Estate planning lawyers can help you choose between these two options, depending on your situation and needs.
Facts to Consider When Estate Planning
A will is a critical part of estate planning, but it’s not the only factor to consider. Regardless of how comfortable you may feel with your current situation, it’s important to always be planning for the future. One way to do that is by creating an asset protection plan. This involves organizing your finances in a way that protects your most valuable assets in case something unexpected happens. Here are some other factors to think about when putting together your estate plan:
The type of assets you own
When it comes to estate planning, one of the most significant things to consider is what assets will transfer to your beneficiaries after your death. While some assets, like retirement accounts and life insurance policies, are relatively straightforward, other types of assets can be a bit more complicated.
Your beneficiaries’ ages and financial situations
If you have older beneficiaries, you may be more concerned about their financial situation. No matter what your beneficiary’s age or situation is, it’s significant to plan for the future. Talk to an estate planning attorney today to learn more about how you can protect your loved ones.
Your state’s estate tax laws
The estate tax is a tax levied on the assets of a deceased person. Each state has its own set of rules governing who is subject to the estate tax and how much they pay. In some states, estates above a certain size are subject to the estate tax, while in others, only estates worth a certain amount are taxed. Knowing your state’s estate tax laws is important for ensuring that your loved ones don’t have to bear an unexpected financial burden after you die.
If you have any other questions about Estate Planning or would like to speak with an estate planning lawyer in Des Moines, IA, please don’t hesitate to contact the Law Group of Iowa. We would be happy to help!
