People are often unaware of the benefits of preparing wills. Many believe that they only need a last will and testament if they have valuable assets that they want to pass on to their heirs upon their death.

People who put off preparing wills may very well leave a mess for their family members to deal with. Instead of choosing an estate administrator and beneficiaries to receive inheritance gifts, the estate will be overseen by a probate judge because no directives were provided.

Probate is necessary to document a person’s death and settle their estate. If a person executes a last will and testament, his property can be donated to whomever he wishes through a process known as probate. Without a will, estates are settled according to state law through a process known as an intestate will.

The probate process is quite extensive and usually lasts several months. Assets cannot be transferred to beneficiaries until the estate is fully reconciled. During this time, property values ​​may depreciate, but beneficiaries must pay inheritance tax based on the value date of death.

Also, if the decedents did not engage in estate planning to cover settlement costs, the trustees may have to sell assets to pay off outstanding debts, court fees, and legal services.

Preparing a will does not allow the estate to prevent probate, but it does provide guidance on conciliation procedures, beneficiaries, personal representatives, and distribution of assets.

The only way to ensure that the heirs receive property from the estate without delay is to establish a revocable trust. Since property held in trusts is no longer owned by individuals, it is not considered part of your estate. Trust property is exempt from probate and can be conveniently transferred to beneficiaries.

There are many types of trusts, but each requires a last will to provide directives regarding property holdings. A Trustee is elected to handle the liquidation proceedings and distribute assets to designated beneficiaries.

Certain items cannot be placed in trusts. Therefore, people must execute a “pour over” will and designate beneficiaries to receive their property. Items included in Wills over include clothing, collectibles, household belongings and sentimental property.

The most practical way to protect assets and pass them on to future generations is to work with an estate planning law firm. Attorneys can offer guidance and help clients understand the benefits and drawbacks of each estate planning strategy.

Before consulting with attorneys, it may be helpful to prepare a list of goals, along with any questions you may have. It may also be beneficial to address the following questions:

• What type of property do you own and what is the appraised value?
• Do you own real estate located in another state?
• Do you own a business and will the business be passed on to a successor?
• Who will become the legal guardian of the minor children?
• Do you want to establish a children’s trust fund?
• Who will receive your estate assets when you die?
• Do you have life insurance policies?
• If your estate has to go through probate, have you set up a financial account to pay any outstanding debts and probate expenses?

While establishing a comprehensive estate plan can be time consuming, protecting your family’s legacy is well worth the effort. Those who have had to resolve an intestate probate will attest that it is a frustrating and complex process.

Instead of adding stress to your loved ones during a difficult time, make the effort to put together an estate plan and execute a last will. Doing so will not only make things easier for those left behind, but it may also reduce inheritance and probate tax liability for heirs.