We Earn | We Spend | We Save | We Invest.
No matter what the volume of money it is, these 4 steps are pretty common. But wait! Let us talk about saving and investing for now. Amidst several investment venues, there is one instrument which is an evergreen, yet profitable tool.
Guessed it right? Yes, it is Real Estate.
The value of investing on Earth can never be compromised. And investing in real estate is not an easy chore. The research, strategies, funding, and well what not, it is a tiring job.
After all these tedious tasks, we invest in real estate, in hopes of making profits. But are we really planning the future of our investments? No.
So what is the best solution? The real estate attorney in Knoxville Tn recommends Estate Planning.
In this blog we will try and give you in depth knowledge about estate planning and how it is beneficial to you.
What is Estate Planning?
Estate Planning assists a person to plan how his/her assets are to be managed, owned, and disbursed, after his/her death.
This is a process of several arrangements eyed at easing the transition phase of the assets and investments.
Now, there is a question forming in your mind i.e. is this not just for the wealthy?
This is a familiar question, with one answer — No, it is not for the rich alone.
To delve more into estate planning, let us understand its various benefits.
Choice is in your hands:
It is simple — with a plan in place, you hold the choosing power. From who manages your assets to the ratio at which the estate needs to be divided, the choices are in your hands.
On the flipside, without a plan, inheritance is a huge hurdle with the court being the ultimate authority. And family issues in court tend to turn ugly swiftly.
Hence, having an estate plan saves a lot of headache and also prevents future squabbling. And if you have several benefactors, having an estate plan framed and consulted by a real estate planning attorney is a must.
You may also choose the setting up of power of attorney in advance. This helps your heirs to legally use your assets, to an extent, in case you are incapitated for any reason. The same furthers into appointing a healthcare professional for yourself, to take medical decisions.
Also, consider choosing a personal estate representative to manage your estate. This shall give you enough control, without letting the estate go into probate.
Protect your young ones:
Death is uncertain, and uncomfortable for the family. The incident is deemed to take a massive toll on the mental state of the family. Amidst this, who would prefer the headache of inheritance and court proceedings?
And if you are the parent of a young child(ren), the need for an estate plan grows by a mile. For the young ones are the most vulnerable, the safeguarding of their rights are important. From appointing guardians to preparing a specific will, estate planning is imperative to protect your young ones.
You may also plan the restriction of your child(ren)’s access to your assets. Investing in a trust and ensuring the child(ren) inherit your property only after a certain age is an ideal measure.
Furthermore, with proper planning, you can ensure the estate goes to your child(ren), even if your spouse remarries. This is an often-seen contentious issue in family law. Hence, planning for it in advance shall protect the rights of your younger ones.
Taxes, taxes, and more:
Any estate planning lawyer shall attest to the humongous bite, the taxes take into your estate value. With the tax burden getting heavier by the day, you would not want your benefactors to bear them too.
Choose a real estate attorney to understand the planning of tax protocols in detail. This knowledge can help in transferring the estate to your heirs with little to no tax burden.
Without an estate plan, there are two profound ways by which your heirs are going to be affected.
First, a no-plan transfer of estate shall succumb to various taxes. The federal and state estate taxes and state inheritance taxes — these shall eat a big chunk of your estate value. This means you will be leaving notably less than what you had intended to your heirs.
Second, without a plan, your benefactors shall be liable to cough up hefty taxes to the authorities.
All these can be solved easily — Hire a real estate attorney in Knoxville Tn and chalk out an estate plan.
Avoid probate at all costs:
In cases of inheritance, without an estate plan, the court holds authority. And moving your estate to probate is how courts love to play. A probate is a process where the court oversees and attests all the procedures of inheritance.
Sounds simple and helpful, right? Maybe yes, but in reality, it is a rabbit hole. It shall cost your family a lot of time, money, and efforts. The probate court appoints an executor for your estate who shall act as a personal representative. He/she shall identify your assets, pay the debts off, and shall supervise the distribution.
However, for all this, it shall cost five percent of your assets’ value as fees to him/her. Depending on location, this percentage may/may not vary. The executor further hires an estate planning attorney for documentation and overseeing purposes. And guess what, the attorney too is given a similar percentage of assets as a fee.
So, ten percent of your assets bid adieu to your heirs, just because you did not have an estate plan in place. To save yourself and your heirs from these, consider hiring a trust and estate planning attorney near me. A simple creation of revocable trust or joint holding of assets with your partner can save tons of headaches for you.
All these benefits can only be reaped with a trustworthy estate planning attorney on your side. Estate planning is not a DIY measure. Volunteer Law firm deals with estate planning on a regular basis. With years of experience built on credibility and trust, they are here to assist you.