After tying the knot and settling in with your new spouse, it's important to learn about and initiate the estate planning process. While you may have plenty of time to plan in the future, you never know what may happen in the interim.
Just as you have concerns about your own estate plans, it's natural to wonder if your parents have taken the necessary steps to protect themselves.
Just because you've created an estate plan doesn't mean you can turn a blind eye to it for the rest of your life. There will be times when it makes sense to review your estate plan, with the idea that you may need to modify some of the terms and conditions.
It doesn't matter how you feel about estate planning, it's imperative to make sound decisions that will benefit you and your family now and in the future.
Estate planning is a detailed process that requires you to make informed, legally sound decisions. When you do this, you end up with a plan that gives you and your family peace of mind. But when you don't, it can cost you and/or your loved ones dearly in the long run.
It's natural to have concerns when creating your first estate plan. You want to get everything right, but you're also stressed out over all the decisions you have to make.
Louisiana residents who receive money from a trust must generally account for it on their tax return. If money held in a trust generates revenue that remains inside of it, the trust will be responsible for paying taxes on those funds. As a general rule, the tax bracket for individuals is lower than the tax bracket occupied for a trust. Trusts pay a 37% tax rate if they generate annual income exceeding $12,950.
There are a number of ways people in Louisiana can structure their estate to protect assets from a divorce. Parents may want to place assets intended for their children in a revocable trust with a protector. The child can be named as the trustee, but the protector takes over if there is a lawsuit or other issues that could cause the assets to be seized.
Louisiana residents and others may choose to wait until later in life to create an estate plan. They may also feel confident that a will is adequate to meet their needs. However, it can be a good idea to start building an estate plan as early in life as possible, and it can include trusts, life insurance policies and a power of attorney. Ideally, individuals will draft both financial and medical power of attorney documents as soon as they graduate from college.
It isn't uncommon for Louisiana residents to procrastinate when it comes to estate planning. However, being proactive can give individuals a sense of control over what will happen to them and their assets if they get sick, become incapacitated or pass on. Common estate plan tools include a will, a trust, and powers of attorney. Living trusts may be preferable to wills as they don't need to go through the probate process.