Estate Planning - Part One

Estate Planning by David Eghbali - Part One

Estate planning can be one of the single most important things you do whether you are young or old, rich or poor and married or single. There is one guarantee in life and that is everyone will one day take their last breath. What happens to all of your belongings, cash and investments? Who will end up with car and clothes? You may think that these details will magically work themselves out when you pass away, but it can leave a real mess of arguments, court battles or the state can take possession. 

This is a two-part series of articles that will address different aspects of estate planning and explain what you can do to prepare yourself. People tend to come out of the woodwork to stake a claim after someone dies. Do not let this happen to your family. A well-done estate plan is the only way to exercise control over matters once you are gone. It is your last decree on who you want to take possession of all that you own. 

Please note that following article is the expressed opinion of David Eghbali David is not an attorney or recommending the reader to take any action without first consulting their tax attorney or other professionals specializing in estate planning.  #DavidEghbali

What Is an Estate? #EstatePlanning

To put it simply, an estate is everything in total that you own. It can be:

• Houses
• Cars
• Motorcycles
• Businesses
• Furniture and appliances
• Clothing
• Tools
• Exercise equipment
• Airplanes
• Boats
• Tractors
• Stocks
• Bonds
• Precious metals
• Jewelry
• Bank accounts

The list can be nearly endless. It can include pets or even have arrangements set up ahead of time to place your children into the proper care should anything happen to you. This is something that you do not want to leave to chance. David Eghbali urges all parents, at any age to consider the options carefully and make wishes known through an estate plan to avoid added trauma to your kids.

Tallying Up the Estate                                   #EstateInventory

Taking an accurate count of everything you own will take anywhere from an hour to all day, depending on the size of your actual estate. This can be quite the chore for the super wealthy, but it is just as important for those in lower income brackets to plan an estate as well. There is no bias when it comes to probate court. Rich and poor estates end up tied up if there is no designated plan. 

David Eghbali also suggests keeping a running list if you are young and plan to acquire more assets in the future. It is reasonable to assume that you will still live out a few more years, which means you will be buying and earning more as you go.

Deciding How to Divide the Estate #DividingEstates

This portion might be the toughest to get done. You need to make firm decisions about who you want your assets to go to. Will it be more than one person? Are there specific items you want to see go to specific individuals? This is where estate planning comes in handy. Your wishes will be known and can be divided however you desire. 

This does not mean it cannot be challenged, but it limits the opportunity for an all-out estate war. David Eghbali goes on to caution that in the interest of peace you might want to consider discussing the matter with the individuals you plan on offering parts of the estate to so that there will be less contention when and if the time comes.

Last Will and Testament       #LastWillandTestament

One of the most common ways to legally divide the estate is to write up and sign a last will and testament. This is your voice from beyond the grave that spells out exactly how you want your estate distributed. It can specify people that get specific items and it can also specify who gets nothing. Finance expert David Eghbali suggests that you get very specific so that it is clearly spelled out for the court should anything be contested.

Living Trust   #LivingTrusts

This is the type of asset division that happens while you are still alive. The benefactors will end up receiving some of the benefits while you are still around to monitor the situation. David Eghbali expresses that this is one of the best ways to divide your estate if there is a lot of cash and you want to make sure it goes into the right hands. 

Guardianship for Minor Children

The worst part of estate planning for any parent is trying to mull over and discus what will happen to your kids in the event that you both pass away and they are still minors. A judge will award custody to a surviving parent, unless they are deemed unfit. David Eghbali urges you to carefully choose who you would like to raise the children in case you both die. You will need the agreement from the party you choose, but make sure to get everything in black and white for the courts.

Ways to Avoid Probate Court           #AvoidProbateCourt

Probate is when your last will is looked over by a court to determine if it is legal and then passes the estate division over to the designated executor. This can get to be a lengthy process and cost a lot of money in court costs and fees. David Eghbali suggests that there some ways to avoid the cost and annoyance of probate for big and small estates alike.