Beneficiaries and Estate Planning For Inheritance Property
Beneficiaries refer to people who receive personal property, real estate or money from a benefactor.
When inheritance is involved, the benefactor refers to a person who is deceased.
Decedents can designate beneficiaries within their last will or by assigning beneficiary rights within life insurance policies, bank accounts or property titles.
The most common beneficiaries include the surviving spouse, children, relatives and friends.
Decedents can also elect to bequeath inheritance property and monetary gifts to non-profit organizations, charities, scientific research groups, or institutes of higher education.
A last will and testament allows decedents to designate how their property and financial assets will be distributed.
When decedents die without executing a last will, property is distributed according to probate law.
Regardless of whether decedents execute a Will or not, the estate must be managed by a probate personal representative.
The estate administrator is responsible for many duties and must adhere to probate laws established in the state where the decedent resided.
Some states require Administrator's to obtain a cash bond.
Others require court confirmation, while some states allow Administrator's to manage the estate without court interference.
Estates must undergo the process of probate unless the decedent established a trust.
Assets placed inside a trust are no longer considered part of the estate and are exempt from probate.
Everything owned by the decedent is held in probate to ensure proper protocol is followed.
Probate grants heirs and beneficiaries the option to contest the decedent's last will and gives creditors the opportunity to make claims against the estate.
On average, probate takes three to nine months to complete.
Much depends on estate value, types of inheritance assets, and court caseload.
In order to avoid probate, decedents can designate beneficiaries to receive proceeds in bank accounts, retirement and investment portfolios, and life insurance policies.
Beneficiaries can be established for real estate through Joint Tenants of Survivorship.
Motor vehicles, recreational vehicles, boats and trailers can be jointly titled for beneficiary designation.
Upon death, the designated recipient must present the original vehicle title, death certificate and copy of the will or probate records and apply for a new title.
The recipient can designate a new beneficiary to receive the property in the event of their death.
Property exempt from probate may require filing certain documents in order to legally make claim.
For example, while retirement accounts and financial portfolios avoid probate, the estate executor must present date of death valuation forms to the county tax assessor's office.
If the decedent owed taxes, the estate is responsible for paying outstanding taxes before asset distribution can occur.
Financial institutions cannot distribute funds until the tax assessor signs off on the forms.
While most of us don't relish the thought of who will receive our belongings when we die, it is important to engage in estate planning.
At minimum, execute a valid last will and update it when major changes occur, such as buying or selling real estate.
Estate planning can be accomplished by various means.
Individuals with estates valued below $50,000 may only require a basic will, while those with larger estates may require an estate planner or probate lawyer.
Keep the Will, along with life insurance policies and property titles in a safe location and provide copies of the documents to the appointed probate executor.
When inheritance is involved, the benefactor refers to a person who is deceased.
Decedents can designate beneficiaries within their last will or by assigning beneficiary rights within life insurance policies, bank accounts or property titles.
The most common beneficiaries include the surviving spouse, children, relatives and friends.
Decedents can also elect to bequeath inheritance property and monetary gifts to non-profit organizations, charities, scientific research groups, or institutes of higher education.
A last will and testament allows decedents to designate how their property and financial assets will be distributed.
When decedents die without executing a last will, property is distributed according to probate law.
Regardless of whether decedents execute a Will or not, the estate must be managed by a probate personal representative.
The estate administrator is responsible for many duties and must adhere to probate laws established in the state where the decedent resided.
Some states require Administrator's to obtain a cash bond.
Others require court confirmation, while some states allow Administrator's to manage the estate without court interference.
Estates must undergo the process of probate unless the decedent established a trust.
Assets placed inside a trust are no longer considered part of the estate and are exempt from probate.
Everything owned by the decedent is held in probate to ensure proper protocol is followed.
Probate grants heirs and beneficiaries the option to contest the decedent's last will and gives creditors the opportunity to make claims against the estate.
On average, probate takes three to nine months to complete.
Much depends on estate value, types of inheritance assets, and court caseload.
In order to avoid probate, decedents can designate beneficiaries to receive proceeds in bank accounts, retirement and investment portfolios, and life insurance policies.
Beneficiaries can be established for real estate through Joint Tenants of Survivorship.
Motor vehicles, recreational vehicles, boats and trailers can be jointly titled for beneficiary designation.
Upon death, the designated recipient must present the original vehicle title, death certificate and copy of the will or probate records and apply for a new title.
The recipient can designate a new beneficiary to receive the property in the event of their death.
Property exempt from probate may require filing certain documents in order to legally make claim.
For example, while retirement accounts and financial portfolios avoid probate, the estate executor must present date of death valuation forms to the county tax assessor's office.
If the decedent owed taxes, the estate is responsible for paying outstanding taxes before asset distribution can occur.
Financial institutions cannot distribute funds until the tax assessor signs off on the forms.
While most of us don't relish the thought of who will receive our belongings when we die, it is important to engage in estate planning.
At minimum, execute a valid last will and update it when major changes occur, such as buying or selling real estate.
Estate planning can be accomplished by various means.
Individuals with estates valued below $50,000 may only require a basic will, while those with larger estates may require an estate planner or probate lawyer.
Keep the Will, along with life insurance policies and property titles in a safe location and provide copies of the documents to the appointed probate executor.
