Many Georgia estate planners note the value that trusts bring to estate administration. A client working closely with an experienced estate planning attorney can realize multiple benefits from trust creation, including these:
Georgia residents are good at procrastinating when it comes to estate planning. After all, planning for one's death isn't the most pleasant thing to do. Some people dread it so much that they tell themselves lies in order to postpone the process. For instance, someone might convince him or herself that planning for his or her death will cause it to happen. Although everyone will die at some point, it isn't necessarily because they executed a will.
Some people in Georgia who are creating an estate plan might want to consider using a trust. A trust can offer a number of benefits, including protecting assets in case of a divorce or against creditors. Shares from a family business can be placed in a trust where they can provide income to beneficiaries without giving them voting rights. Instead, the trustee has voting rights, and this can prevent beneficiaries from voting only in their own self-interest.
It may be possible for blended families in Georgia and elsewhere to coexist peacefully. However, it is important to make sure that all potential beneficiaries are accounted for in an estate plan. If a person chooses to leave everything to a spouse, there is no guarantee that the spouse will pass on assets to the deceased individual's biological children. Instead, it may be best to create a trust that benefits a biological child after the surviving spouse passes.
A Georgia resident with a lot of assets might want to consider using a trust instead of a will as the main vehicle in their estate plan. While a will comes into effect upon a person's death, a trust takes effect as soon as it is signed. An estate owner may have more or less control over the trust depending on whether it is revocable or irrevocable.
For most people being proactive about estate planning in Georgia, one of the common steps taken is to name beneficiaries. This can be an effective way to ensure specific loved ones receive assets directly and as intended. However, there are certain beneficiary designation mistakes that can just as easily cause legal headaches and family squabbles when it comes times for estate plans to go into effect.
We make a preliminary and quite direct point concerning estate planning on our website at the Georgia law firm of Miles Hansford & Tallant. We stress in a recent blog post that, “Depending on the state and what the heirs want, probate can take anywhere from three months to several years.”
Lee Radziwill, sister of Jacqueline Kennedy Onassis, died in the first part of 2019, but she revised her will as recently as September 2018. This is not unusual for a person who wants to make sure an estate plan remains current in terms of assets, family members and plans. Radziwill also had a trust document from 2017. Like Radziwill, people in Georgia should make sure they review their estate plan and keep it current.
The nuances of inheritance tax are difficult and complex. They require familiarity and expertise in an area of law that shifts and evolves every year. One of those areas that can be difficult to understand is the step-up costs involved in estate plans and inheritance taxes.
Millions of people across Georgia and other parts of the country begin planning their estates each year. They know that passing away without a will can wreak havoc on their loved ones. The issue that some face is that they don't know which type of trust will provide the most benefits for their heirs.