Controlling the Distributions

How Can I Control the Distribution of My Estate?

There are a number of ways your estate can be distributed to your heirs after your death. Each allows a different degree of control over distribution, and each poses different challenges and opportunities. If you haven’t taken steps already, it’s important to consider planning now for the distribution of your assets.

Intestacy

If you die without a will, it is called dying “intestate.” In these situations, the probate court will order your debts paid and your assets distributed. Unfortunately, your assets will be distributed according to state law.  

Wills

A will is your written set of instructions on how you would like to distribute your estate upon death. While using a will guarantees probate, it is a more desirable alternative than intestacy. 

Trusts

A trust is a legal arrangement under which one person, the trustee, manages property given by another party, the trustor, for the benefit of a third person, the beneficiary. Trusts can be very effective estate planning tools. 

Joint Ownership

Another way to distribute your estate is through jointly held property specifically, joint tenancy with rights of survivorship. When you hold property this way, it will pass to the surviving co-owners automatically, “by operation of law.”  

Contracts

The fifth and final way to pass your property interests is through beneficiary designations.If you have an employer-sponsored retirement plan, an IRA, life insurance, or an annuity contract, you probably designated a beneficiary for the proceeds of the contract.  

Many Considerations

There are a variety of considerations that will determine the distribution methods that are appropriate for you. For example, you must consider your distribution goals. By examining your situation and understanding how your assets will pass after your death, you may be able to identify the methods that will help you achieve your goals most effectively.

Likewise, the larger your estate, the more you may want to consider using a trust to help guide your estate distribution. In addition, you will have to consider any special situations you may have  such as a divorce or a disabled child. All these are important considerations.

If you are considering Retirement planning , call for a Free Consultation today.
 
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