Estate planning is the process of designating assets so there is no confusion after the person passes away. It requires a careful estimation of their net worth as well as removing uncertainties over the administration of the estate.
Another aspect of estate planning is ensuring that beneficiaries receive assets in a way that is rightful by law and minimizes estate tax liabilities and other taxes. To draft a well-crafted estate plan, it is best to hire a board-certified attorney in Florida as they are well-versed with the state law. Read on to learn more about managing and arranging the assets to can make an informed decision.
Here’s How to Can Get Started with Estate Planning
- Determining the Net Worth of the Person
The very first step in developing an estate plan is calculating the person’s net worth in terms of tangible and intangible assets. The tangible assets of the person may include the home, land, vehicles, collectibles, and any other personal possession of the person. While intangible assets include stocks, bonds, life insurance policies, certificates of deposit, ownership in the business, and many more.
A Fort Myer real estate attorney can help calculate the fair market value of the assets as per the state law and market valuation to ensure that the assets are divided equally among the beneficiaries.
2. Estimate the Taxes
After having an estimation of the net worth, it helps to figure out if the estate is liable to federal estate taxes. A good estate plan takes into account different taxes such as the estate tax, inheritance tax, capital gains tax, and income tax. The taxation rules vary greatly from state to state.
A board-certified attorney in Florida can help estimate the different taxes applicable during the transfer and can offer appropriate legal advice for handling it. Here are a few pointers to keep in mind:
- Qualifying properties in Florida need to pay federal estate tax.
- The state of Florida does not have an ‘Inheritance Tax’.
3. Prepare for Documentation
An estate plan also includes preparing appropriate legal documents. Fort Myers real estate attorneys can help draft the right documents as per Florida law. These documents entail important legal directives and consist of the following documents:
Will: A well-drafted will allows individuals to name their beneficiary in case of death. It ensures that the wishes of the then-deceased person are fulfilled and the assets are designated to the beneficiary without going through the hassle of probate.
Power of Attorney: This document will give limited power to the named representative in the event of the person’s incapacity. The power of attorney allows the named representative to make financial, legal, and administrative decisions on behalf of the owner.
Living Will: A living will is a carefully planned medical directive that entails the medical wishes of an individual.
4. Review the Beneficiary Names
The foundation of a good estate plan lies in the careful selection of beneficiaries. Here are a few things to keep in check while drafting an estate plan:
- Checking insurance policies: In the case of the death of the individual, the insurance policies usually have beneficiary designations. Be sure to take into account those designated beneficiaries when drafting a will.
- Periodic review of documents: It helps to review the estate plan now and then to update the name of new beneficiaries or cancel the name of an existing one.
- Do not leave any beneficiary designation blank. If the account of the individual goes into probate, the state will then determine how the asset distribution will happen. To prevent this from happening, be sure to leave no details about the beneficiary blank.
Get the Help of a Professional Real Estate Attorney
A good estate plan takes years of deliberation for it to be perfect. Board-certified real estate lawyers in Florida have the skills and expertise to explain the complicated aspects of estate planning and can help devise a plan that adheres to all legal compliance with Florida state law.
The best way to ensure that the estate documents don’t miss out on any important detail is by consulting with a professional Fort Myers real estate lawyer. Also, once the estate plan is ready, it will require careful reviewing and updating. An estate planning lawyer will ensure that the interests of the individual are reflected in the documents and will make the required changes.