One problem that frequently stems from the inheritance process is fractured relationships between siblings. Unfortunately, the common denominator in many of these situations is the parents' estate plan.
Whenever you open a financial account, you’re almost always asked to name a beneficiary. Simply stated, a beneficiary of the account is someone who is entitled to the benefits of the account, typically, on the death of the account holder. If you’ve purchased life insurance, for example, you name a beneficiary, who receives the benefits of the policy when you pass.
We found that Covid-19 had a significant impact on Americans' sense of personal readiness, with 65% saying that coronavirus made them realize the importance of sharing important information with family. Around the same amount of people (64%) noted that planning for the future was more important than ever and half (50%) said the pandemic made them realize how unprepared they were for a serious emergency.
If you have updated your estate plan during the Covid crisis and even found a way to sign your documents while maintaining social distance, do not overlook the last step of trust funding.
Talking about death makes most of us uncomfortable, so we don't plan for it. That's a big mistake, because if you don't have an end-of-life plan, your state's laws decide who gets everything you own.
By discussing finances with your children early and often, you can set them—and future generations—up for success, when it's time to receive the wealth you've accrued.
Probate and trust administration are not the same. There are important differences and similarities between administering a decedent’s probate estate and administering a decedent’s trust estate.
