When you engage in estate planning in Indiana, you determine how to manage, distribute and preserve your assets after you die. One of the biggest misconceptions about estate planning is that only ultra-wealthy individuals use it. However, regardless of their financial position, anyone can benefit from estate planning.
Assets included in estate plans
An individual includes various elements in their estate plan, such as homes, businesses, life insurance, pensions, debts or other financial investments, and determines how to manage them. Creating an estate plan offers several benefits, including the preservation of family wealth. A properly prepared estate plan enables a person to make provisions for their surviving children and spouse. It allows individuals to make charitable donations to establish their own legacy or invest in the future education of their grandchildren.
Wills in estate plans
When a person creates a will, they create a legal document that lays out instructions about how their property, minor children and assets are handled after they die. In a will, a person can lay out their trustee or executor, who has a responsibility to fulfill their wishes.
Probate is an essential component of estate planning that involves the court validating the authenticity of a will. It serves as the initial phase in administering and distributing the deceased person’s assets.
While will planning and estate planning may be difficult for most to think about, dedicating time to this important matter can significantly ease the burden for surviving relatives. Having a will provides peace of mind and enables grieving loved ones to focus on the grieving process rather than expending excessive energy on figuring out how to handle the deceased’s estate.