Financial planning is important for preparing for the future. In Florida, this can mean a variety of things, ranging from making plans to finance a child’s college education or preparing for retirement. However, one of the most important, yet commonly neglected, aspects of financial planning is estate planning. Creating an estate plan makes it easier to distribute an estate’s assets to intended beneficiaries during the estate administration process.
An estate plan lays out the process of distributing assets of a person’s estate after he or she has died. A good plan will eliminate uncertainty after the person passes away. A good estate plan can also help beneficiaries minimize tax liabilities. Additionally, it helps beneficiaries avoid a costly and lengthy probate process in court, which can result in significant legal expenses.
Although many believe that estate planning is only for the wealthy, just about anybody can significantly benefit future beneficiaries through an effective estate plan. There are a variety of estate planning tools and strategies which can benefit just about anybody. Some of these include a last will and testament, a power-of-attorney and various types of trusts. However, which strategies and tools are appropriate depends upon each individual situation.
In order to formulate the best estate planning strategy, a person in Florida will have to analyze what type of assets he or she has in his or her estate. One will also need to understand applicable estate planning laws and how they apply to individual situations. This will enable one to tailor estate planning documents to fit individual circumstances, while also making sure the estate planning documents are legally enforceable during estate administration.