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Controlling how, when, and to whom your estate will be disbursed is called estate planning. Many people prefer not to dwell on worst-case scenarios, and as such, are often unsure of what the process is, what it entails, and why it’s so important to prepare your loved ones. To get a sense of the basics, below are some answers to frequently asked questions.

A Quick Guide to Estate Planning 

Why Do I Need an Estate Plan?

In addition to asset distribution, a well-crafted estate plan can identify an individual to make decisions on your behalf should you become incapacitated, as well as specify a guardian for your children. Further, the document minimizes estate and transfer taxes and helps avoid the costs and stresses associated with probate.

What Is a Will?

A will is a legal document directing the distribution of property following the owner’s death. They may be revoked or modified at any time during the lifetime of its creator. 

What Is a Trust?

A trust refers to the transfer of property from one individual to another to be overseen and used for the benefit of a third party, such as a minor child. Trusts can also dramatically lower the death taxes of larger estates.

What Is a Power of Attorney?

power of attorneyA power of attorney is a legal document prepared during an individual’s lifetime. It provides a designated party with the power to act on the estate owner’s behalf in the event they become incapacitated.

What Happens If I Don’t Plan?

If you pass without an estate plan, your property will be divided according to state law. In most cases, the state will craft a “pecking order” of beneficiaries, beginning with the spouse and children, and moving down to living parents, siblings, and extended family members. While the resulting plan may sit well with some people, it may prove objectionable to others. The bottom line is, without an estate plan, you have no say in the matter.  

 

Do you need help with estate planning? Backed by over 30 years of experience, John E. Bach Attorney at Law provides personalized, professional legal counsel to residents of Goshen, NY. He will help you create a will and establish a legal trust so you can have peace of mind. Stop by his website to learn about his practice areas or call (845) 294-7941 to discuss your case directly.   

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