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Wills and Estate Planning - Do I Really Need to Do This?

Wills and estates are one of the most complex areas of law. You may think wills and estates are about reviving someone's life or passing down property to a spouse, but in reality they are much deeper than that. Estate planning serves a very important purpose in both a financial and emotional sense. Whether you're planning your estate and writing your will now or doing so with a family member, you understand the significance of clearly laying out wishes in the future.

If you've ever had to deal with estate planning, then you understand how confusing it can be. Filing a proper will, making sure personal belongings are protected, and taking care of a person's finances are all important parts of estate planning. While this law was traditionally reserved for very wealthy people, anyone can benefit from the proper estate plan.

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The biggest problem with wills and estate planning today is that everyone is forgetting to document their intentions. This has caused a lot of problems, including probate and asset protection, which mean less money for attorneys and creditors and more money for the person who is planning their affairs. This is why most people do not hire a lawyer when planning their affairs and even fewer people take the time to document their planning today.

wills and estate planning fall under personal jurisdiction, meaning that the state laws govern what happens to your property after you pass away and determine who gets it after you die. For example, there are intestate estate planning laws that will determine who gets the money when you die and there are also state and federal gift tax laws to consider. While probate and inheritance laws are harder to figure out, they are closer to real estate planning than most people realize.

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Probate laws vary widely from state to state, so you'll want to check with your state's courts to see what the laws are before trying to plan your affairs using will or estate planning. The good news is that most wills and estates are automatically finalized when a person passes away regardless of whether they had legal counsel or not. If this is the case, then you can skip the legal proceedings and simply appoint a person to handle all of the final details of your passing down. This can include who will get your assets and who will be responsible for paying creditors, among other things.

Estate planning, of course, encompasses a lot of other issues as well. You'll want to establish a will that clearly outlines who will inherit your properties and who will hold them after your death, as well as how you want your family to be financially supported post-death. Your last piece of planning, of course, is making sure that no one can collect your Social Security or pension benefits. Many people choose to set up a living trust to protect their assets and ensure that nobody will be able to take them without consent. As you can see, wills and estate planning can be confusing, but it's a necessary part of your financial future.

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