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Most of us remember that Elvis Presley, The King died in 1977. At that time his condition was worth an estimated $ 10 million. Unfortunately, due to legal costs, legal fees, property taxes and the amount was reduced to $ 3 petty minnion. This could have been avoided with the use of tools proper planning of assets.

Probate is the legal process in which a court supervises the distribution of property left in his will. In the case that a property must go through the process of probate, the executor appointed to represent the will of the deceased in order to receive a legal document called letters testamentary, allowing them to pay debts and funeral expenses, you must file tax returns, and transfer of the flashes or the name, in the accounts to their beneficiaries. This process can be intimidating and costly. Through the reorganization of its assets, can help avoid probate for your heirs.

If you're single, chances are your bank and investment accounts are titled in your name only. At his death, your assets will be distributed through probate. Joint tenancy, which is more popular among married couples, allows two people with equal participation of their accounts. On the death of a person, the person remaining becomes the sole owner of the accounts. On the death of the second person, property will be distributed through probate.

If you are going their goods directly to certain individuals immediately after his death, the easiest way to avoid the pitfalls of probate and the expense of a lawyer is directly the name of a beneficiary of the account. Plans individual and corporate pensions (individual retirement accounts (IRAs), 401k's, 403b, etc.), annuities fixed and variable life insurance policies are examples of accounts that include a beneficiary designation form. Usually you are allowed to list as many beneficiaries as you wish with the percentage of the account assigned to them.

However, accounts that do not correspond to the above categories require a tactic different. This approach is to use Payable On Death (POD), transfer on death (TOD), or in trust for (ITF), the description in the title of the property. An example would be the degree of a mutual fund account as "John Doe and Mary Doe, Jane Doe POD. Upon proof of death of John and Mary, the account will be transferred to Jane. At that time, Jane should revert to the ownership of the account on behalf of its beneficiaries.

Elvis Presley goods could have avoided much of the tax property a little planning had been done ahead of time. Another method of avoiding probate could have been used in this case is the use of revocable or irrevocable trusts. By having the appropriate trust established by a legal adviser, his assets can be renamed confidence. Assets and property are then owned by the trust they have to go through probate court and go directly to beneficiaries, relatively quickly.

Another option is to give away yoru assets to your heirs while you are living. Since 2008, you can make a tax-free gift of $ 12,000 per person to as many people as you wish. This amount is expected to increase in future. By donating money to their loved ones while they are alive, to reduce the amount of goods that normally pass through succession after his death.

To properly plan your estate, you must use the assistance of an estate planning attorney and a consultant financial authority. The transfer of ownership of any significant value may have tax implications (goods, gifts, or capital gains) that a counselor can do it is known. The creation of the necessary documents and determine the best way to ownership of property, requires the best advice now, and regularly updates track of its beneficiaries, to avoid unwanted inheritance. Even if you are able to protect its assets from probate, you may need the will to address issues that are not covered by other legal instruments such as appointing the guardianship of their children in the event of his death.

Not many people enjoy discussing what you want to happen to his death, however, the thought of his family and other heairs not getting what you want them to have is equally worrisome.

About the Author:

Robin Davis is a CERTIFIED FINANCIAL PLANNER® leveraging 24 years of experience in the business. She is the owner and top advisor of Davis Wealth Enhancement Group in Stuart, FL. She has been advising retirees and those nearing retirement since 1984, helping her clients work toward their financial goals. A member of the Financial Planning Association®, Davis had held hundreds of public seminars around the country.

Robin is the author of an award winning book titled, “Who’s Sitting on Your Nest Egg? Why You Need a Financial Advisor and Ten Easy Tests for Finding the Best One”, which is endorsed by the Financial Planning Association®.

Davis is a contributing author for Affluent Magazine and has been a guest on numerous radio, and television shows.

Article Source: ArticlesBase.com – What’s in a Name? Tips on Avoiding Probate

Golowin Legal, LLC – Elder Law, Estate Planning & Asset Protection