Planning out how your Alabama estate is going to be handled once you’ve passed on or you are incapacitated is one of the most important things you can do for your loved ones. However, even if all legal obstacles have been met, there are certain things that people may have to deal with, and that is difficult heirs. The following includes a list of steps you can take to protect your estate from difficult heirs.
Assigning a beneficiary
One of the most common mistakes people make when estate planning is failing to appoint a beneficiary. Forgetting to add a beneficiary can lead to difficult heirs filing lawsuits about who should get certain assets from your estate. A beneficiary will be able to provide legal representation of your estate and thus divide your estate according to your wishes.
Creating a trust
Perhaps the best way to protect your assets from being wasted by irresponsible or difficult heirs is to create a trust. Although you have several options at your disposal, the two most commonly used are revocable and irrevocable trusts. Although both offer different perks, they both protect your estate from potential mistakes made by your heirs.
Stressing about where your money goes after you pass? This is a common concern for many people as they want to ensure that their money is kept within the family. A great way to accomplish this is to gift it while you’re alive. Most gifts will be tax-free and thus will not reduce the value of your assets. It is recommended to not gift assets that increase in value, such as a home or business.
Crafting a well-organized estate plan can be a daunting and difficult process to go through. It is important to consult with an attorney as soon as possible to help you reduce the chances of making costly legal mistakes.