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Some of the simple estate
planning concepts are described here.
Law
of Intestacy (dying
without a Will):
The laws vary considerably in the various
states and are affected by your state of residence.
If you live in the western United States and you
are married, your estate will more than likely fall under
the ”community property” rules, while most other parts
of the country adhere to a more traditional set of rules.
Probate
and the "Simple Will"
Many people incorrectly assume that the writing of a will
automatically sets up the proper transfer of assets to
named beneficiaries and the avoidance of probate fees and
expenses for the balance of their estate.
In most cases, nothing could be further from the
truth.
The
following vehicles normally bypass probate, with a valid will:
-
Life
and annuity insurance policies,
-
IRA and pension accounts,
and other accounts with proper beneficiary designations;
-
Gifted
property to another person,
-
property that has been
transferred by trust document, and
-
property held in joint
tenancy
Probate still applies at the death of the
survivor joint tenant.
For example, it is entirely possible to
unintentionally disinherit a child from a prior marriage
since joint tenancy will be given legal precedence over
terms of a will. It happens frequently, and creates
significant problems for the next generation.
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