Labor Day is here! 2021 is far more than half over, and Labor Day is a chance to rest and kick back after you’ve worked so hard. Labor Day began in the nineteenth century, and it is dedicated to the contributions and achievements of workers in America. Traditionally, it is observed every first Monday in September. It wasn’t until 1984 that the federal government officially made it a holiday.
Now, every year, almost all of us have that first Monday in September off work. While you’re firing up the grill or planning a day trip, consider thinking about how you’re protecting everything you’ve worked for. Estate planning can help you keep your hard-earned assets, business, and more from falling into the wrong hands.
Estate Planning Tools
There are a wide range of estate planning tools designed to help you protect your assets after you die. Whether you’re trying to safeguard your business or your home, listed below are some documents to help you do so.
For Your Business
There are estate plans for businesses that handle what happens to your company after you die. These succession plans deal with things like transfer of power or liquidation, as well as insurance and tax issues.
For Your Assets
Wills and trusts are two of the most common estate planning tools for assets. Your last will and testament is a final expression of where you want your assets to go after you die (to certain family members, charity, creditors, etc.). A trust is a little bit different, as it can take place while you’re still alive. With a trust, you transfer title to your property for the benefit of a third party. You transfer to the title to a trustee, who grants it to the beneficiary upon your instruction. Trusts are often preferred to wills because they help people avoid probate court.
For Your Kids
Many people might not know this, but estate planning can help your kids, too. Part of estate planning involves guardianship. Choosing guardians for your kids in the event that something happens to you and/or your spouse is essential to their well-being.
Threats to Your Estate
So, what happens if you don’t have an estate plan, or if your estate plan is poorly executed? Probate court and will challenges are two common threats to your estate and asset division.
Probate Court
Probate court doesn’t always mean that something has gone wrong with your estate plan. Wills need to be authenticated in probate court for them to go into effect, and, if they’ve been properly executed, there shouldn’t be any issue. Where there is a problem is with intestacy.
Dying intestate means that you have no estate plan. In that case, a probate court judge will divide up your assets after you die. The aim of the division will be, first and foremost, to pay off your creditors. This means that ideas and plans you might have had for your assets won’t be carried out, and your estate will be divvied up by the court. It is a hectic, time-consuming, and burdensome process for your family.
Will Challenges
Even if you have a will, there’s a chance it might not be executed properly. If you have a good attorney, that chance shrinks to next-to-nothing. However, in today’s era of Legal Zoom, things tend to go wrong. A will is filled with little technicalities, and, if you miss them, you run the risk of a relative challenging your will. Will challenges aren’t uncommon, and they can put a huge wrench in your estate plan.
When it comes to what you’ve worked for, no measure is too great for you to keep it safe. A comprehensive estate plan can keep your assets and business from falling into the wrong hands. If you have a specific idea for what you want to have happen to your possessions after you die, contact our attorneys at WFP to discuss setting up an estate plan.