The importance of estate planning to anyone who is keen on continuity and providing for loved ones in the long run cannot be overly emphasized.
However, most people living in the United States who would benefit immensely from estate planning often fail to take this important step because of the mistaken belief that estate planning is only important for the wealthy since they are the ones with enough assets to be brought under contention.
Even more people fail to plan their estates simply because they are not aware of the benefits that they stand to gain from doing so. And here comes the main question: why is estate planning so important? Consider the following:
Without a valid will, you have no control over who gets your assets when you die and there is always a good chance that the said assets could fall into the wrong hands. Planning your estate in advance and drawing up a valid will, with the help of a good estate planning lawyer, ensures that your loved ones are provided for even after your demise and that they are able to continue enjoying the same standards of living as they did while you were alive.
Estate planning can help you make preparations for incapacity. Individuals suffering from some terminal ailments are often faced with the prospect of physical or mental incapacitation down the line and by planning your estate, you can decide in advance on what steps should be taken if and when you reach that point. For instance, you could appoint a person or people who will make decisions on your behalf when you are no longer able to make them on your own.
With proper estate planning, you can reduce the financial burdens that will be shouldered by your loved ones upon your death. For instance, you can reduce the costs of transferring property to your family members under the provisions of your will. You could also make arrangements meant to reduce or offset the funeral expenses by catering for that in your will. Contact an experienced tax attorney tampa for legal help.
Financial collapse of an individual, a small business or even a bigger corporation can be pretty traumatic experience with huge consequences. Fortunately, there are law and legal ways of damage control constructed to help debtors pull together and come back to the market.
There are three main types of bankruptcy.
The first type, also known as liquidating bankruptcy, means that debtor will turn over some of his property to the bankruptcy trustee and this property will be sold. Money earned from that selling will be distributed to the creditors according to their legal claims. After that, debtor is no longer legally obligated to pay back his debts. The bright side of this type of bankruptcy is that most of debtor’s property can be exempted. In other words, the debtor gets to keep most of his assets in order to get a chance to recover. The creditors will get their money only if there is more property than can be exempted. Otherwise, creditors won’t be paid. Cases where all debtor’s assets are exempted are called “no-assets” cases. These laws do not refer to some cases, like debts for alimony and child support.
The second type of bankruptcy refers to so called “house keep and car keep bankruptcy”. Individuals who declare this type of bankruptcy are obligated to pay their debts back (or at least part of them) over next five years using their future income. Court settles and approves the repaying plan and the plan becomes official whether the creditors agree with it or not. If the debtor pays his debts back, he gets to keep all of his property. Otherwise, court will mandate for property to be sold. Law allows for this kind of procedure to be used only by individuals, not by corporations. In that case for example we have dallas Bankruptcy lawyer.
Corporations, businesses or partnerships usually turn to third type of bankruptcy law. The idea of this type of bankruptcy law is to allow debtors to come up with a plan of reorganization. If permitted by court, corporations gets to keeps its business alive, apply a plan of reorganization to recover and increase its incomes and thereby pays the creditors back over some future time.