Estate planning is rarely a pleasant experience as it forces the client to recognize their own mortality. It can be difficult to navigate the complexities of tax law, healthcare rules and wills and trusts. Hire an lawyer for wills and trusts near Cicero.
Estate planning is rarely a pleasant experience as it forces the client to recognize their own mortality. It can be difficult to navigate the complexities of tax law, healthcare rules and wills and trusts. To simplify the process, the following list presents five items to include in a comprehensive estate plan.
A Life Insurance Policy
If a client is married with children or plans to start a family in the future, life insurance is a top priority. It is not as complex as some think, and it is surprisingly affordable. A good rule is to take the number of people in the home, multiply it by five, and multiply that number by the client’s annual salary. From that, deduct the net worth to arrive at an estimated benefit amount. A lawyer can help clients look for loopholes to ensure that coverage is provided quickly and consistently.
A Written Will
If a person already has life insurance, they are a step ahead. However, most people start with the will when they think of estate planning. A will states a client’s wishes regarding the disposition of their assets after death, and it is used to determine who gets what after the client’s passing. A lawyer can help a client to write a will to help beneficiaries avoid certain tax thresholds.
Powers of Attorney
Durable powers of attorney are documents that give another person the ability to handle a client’s legal affairs and finances in the event of incapacity, but it expires on death. A client can use the durable power of attorney to appoint a representative. This person is required to act in the client’s interests, and the document can be revoked at any time. A power of attorney makes it easier for a client’s survivors to deal with financial issues after they are gone, and a lawyer can ensure that the document is prepared correctly.
By adding wills and trusts to the estate plan, a client can leave a legacy that provides for loved ones, eases their burdens and prevents disputes over assets. Estate planning can be time-consuming and difficult, and clients should visit Koch & Associates P.C. Attorneys At Law to hire a lawyer for help throughout the process. To simplify the process, the following list presents five items to include in a comprehensive estate plan.
