When your family is unfortunate enough to have experienced the pain of a loved one passing away, you may find yourself overwhelmed by the number of tasks that must be done. This can cause you to be concerned about making sure that your survivors have a stable transition following your passing, and this will require you to have a strong understanding about the legal options that are available when making your final arrangements. Here are some commonly misunderstood topics:
Your Loved Ones Will Always Have To Pay Taxes On Their Inheritance
One of the most important factors when making final arrangements is ensuring that your assets are properly distributed. Unfortunately, there are individuals that assume their survivors will always have to pay taxes on the possessions that they are left. However, many states do not have any inheritance taxes. Furthermore, if you live in a state that has these taxes, you may be able to offset the tax obligations of those named in your will through naming the survivors as the benefactors of life insurance policies. These policies are tax-free, which can make them the perfect option for offsetting any inheritance taxes that your loved ones accumulate.
It Is Not Possible To Avoid Courts When Distributing A Deceased Person's Assets
The process of going through the probate court systems is a task that can be extremely stressful, confusing, and time-consuming. Therefore, you may wonder whether there are options available to help your survivors avoid the need to go through this court system.
Luckily, this is possible through the creation of a living trust. A trust is considered a separate legal entity that will continue existing after you pass away. Due to the fact that the trust will continue to exist after your death, this will help you to avoid probate court as the trust will be able to distribute its assets according to the instructions that you left without the need for your will to be verified and enforced by the probate court.
By placing your assets in a living trust that you directly control, it will be possible for you to continue to have control of your assets while ensuring that they are distributed to your loved ones as smoothly and efficiently as possible. If you do not have much experience with trusts, you may not know there various different types of trusts available, but an attorney like McFarland & Masters LLC will be able to help guide you through the process of forming the correct type of trust for your particular needs and situation.