The primary goal of estate planning is to ensure that a person's assets are distributed according to their wishes, as efficiently and cost-effectively as possible.
A last will and testament is a legal document that outlines how a person's assets should be distributed after their death.
A revocable living trust allows assets to be transferred to beneficiaries without going through the probate process, which can save time and expenses.
While a financial audit can be beneficial, it is not typically included in an estate plan, which usually includes documents like wills, trusts, and powers of attorney.
The executor is responsible for ensuring that the assets of the estate are distributed according to the terms of the will.
A revocable trust can be altered or revoked by the grantor during their lifetime, providing flexibility in managing assets.
A durable power of attorney grants someone the authority to manage the financial affairs of the person if they become incapacitated.
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The estate tax is levied on the transfer of the estate of a deceased person to their heirs.
Life insurance can provide the necessary funds to cover estate taxes and other expenses, ensuring that other assets do not have to be sold.
Gifting assets during the grantor’s lifetime can reduce the taxable estate and thus reduce estate taxes.
A living will allows an individual to outline their preferences for medical treatment if they are unable to make decisions for themselves.
