A property plan is simply a collection of legally binding instruments that allows people to control what happens to their property after death. Some real estate plans include a small number of tools – such as just a will or a will with a will trust – while others are more complicated. However, regardless of the specific type or number of tools your plan uses, creating a plan allows you to be able to control ownership after death, assuming the plan has been made legal estate planning firm.
Largely because people are reluctant to think about death, only about half of all adults in the country are propping up a property plan, according to a Gallup poll. People who expire without leaving a floor are generally referred to as “headed”. For this, all nations have approved ordinances that predetermine what occurs to these properties. These laws are known as intestinal laws or intestinal successions.
In other words, your state has enacted laws that choose what your estate planning choices are – if you don’t do it yourself. If you die without a personal plan, these laws automatically apply to your property. Furthermore, you have no control over what these laws choose for you, unless you override them with a plan of your own.
Real estate planning tools
Perhaps the most important problem your real estate plan will address is inheritance. When building a property plan you can decide who will inherit your property after your death.
Do you want to give money to your siblings or your parents? Do you want your wife to have it all? Do you want to divide your property between your wife and your grandchildren? Regardless of your specific choices, there are several tools that involve using real estate plans that allow you to make inheritance decisions.
The Last Will and Testament
The last will and testament, or will, is probably the best known estate planning tool around. Most people know what a will is, and understand that by making one, they can choose what kinds of inheritances they leave.
But making a will is much more complicated than writing your wishes on a piece of paper. Each state has specific rules that apply to people making wills, and if you can’t follow those rules, your will is useless. These requirements include:
Be at least 18 years old
Be of sound mind
Do your will in writing
Sign the document
Have the article signed by two skilled adult observers
Nonetheless, fulfilling basic legal regulations isn’t sufficient to guarantee your will performs what you need it to do. An effective will is one that meets the requirements of the state, but also one that matches your particular wants and desires.