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Estate planning gives you the opportunity to shape your legacy. But the process of drawing up estate plans can be a complex one, and many people are unaware of its benefits. To help you better understand this topic, here are five facts about estate planning.

5 Facts About Estate Planning

1. A Will Is a Must-Have for Any Estate

estate planningYou might think that because you're young or because you don't own real estate, then you don't need estate planning. But in reality, every legal adult with financial assets should have a will in place. In a will, you define who inherits what of your belongings. Without a will, probate courts will make these determinations for you, and their conclusions could be different from what you would have wanted.

2. Probate Is Mandatory

Probate is the legal, administrative steps taken by a court to verify the validity of a deceased person's estate and to oversee the resolution of said estate. The probate process cannot be skipped. Roughly 10% of an estate's value goes toward probate costs, so be sure to plan your estate accordingly and allocate sufficient resources to cover this mandatory expense.

3. Probate Cost Can Be Minimized

As stated, probate law will always be involved in the resolution of an estate. But there are ways to at least minimize its financial impact. A living trust, for instance, lets you transfer ownership of specific property to the trust itself while you are still living. When you pass away, ownership goes to the individual you named and avoids the probate process entirely. Your estate planning attorney will help you explore this and other options for diminishing probate effects.

4. Choose Someone Capable & Trustworthy as Your Executor

A key part of any estate plan is nominating an executor to resolve the estate. Take your time to think carefully about who you would trust to handle these sensitive legal and financial matters. Also bear in mind that this individual must be objective enough to handle significant duties during a time of loss. 

5. Your Estate Planning Documents Should Be Customized to Meet Your Needs

You may be tempted to track down some will or trust templates and do a fill-in-the-blank-style type of estate planning. But these documents don't account for your unique needs. Your plans should accurately reflect your current situation, your beneficiaries, and specific provisions you've put in place. There is no one-size-fits-all strategy to estate planning. It should be tailor-made for you.

 

Trust the Law Offices of Neil T. Nakamura & Associates to design personalized estate planning for you. For more than 40 years, Attorney Nakamura and his team have served clients throughout the Honolulu, HI, area. Call (808) 945-7645 or visit them online to arrange a free consultation today.

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