Proper planning can ensure that a family is able to avoid unnecessary legal complications after the death of a loved one. Estate administration can be a complex process, one that becomes even more complex when there is no will or estate plan to dictate how assets and property should be divided. Every individual needs a plan, regardless of income level or property ownership.
Failure to have an estate plan can mean that one's assets and wealth is divided contrary to his or her wishes. It could also leave a Georgia family facing complicated legal matters and lead to disputes that could end up in court. Estate plans include health care directives, wills, trusts and more, but they should not be confused with wealth transfer plans.
A wealth transfer plan could be useful for Georgia families who already have an estate plan. These plans essentially serve the purpose of preparing heirs and beneficiaries for receiving future wealth. Studies indicate that much of a family's wealth is lost when it is passed to the second generation, but proper preparation may help to avoid this. This may involve providing heirs and beneficiaries with the details of an estate plan, which should include the value of family assets. Educating heirs on prudent investment strategies could also be beneficial.
It is important to take steps today in order to lay the foundation for a strong future. One of the best ways to care for loved ones and ensure that wealth and assets are distributed appropriately is by developing an estate plan. This effort can help prevent future problems with estate administration and provide peace of minding regarding hard-earned wealth.
Source: forbes.com, "The Difference Between Having An Estate Plan And A Wealth Transfer Plan", Michael Chamberlain, July 18, 2016