Estate Planning: Wills, Trusts, Guardians, Insurance, and Taxes
If you'd like to rest assured that your loved ones will be cared for and not left with a financial or legal mess when you're gone, now is the time to get the necessary paperwork in order. There are a number of Web sites that can show you how to do it.
Expand All Guide SectionsEstate planning basics
When we die, we leave behind the material possessions and financial assets (or debts) we've spent our lives accumulating. Estate planning is the process of arranging for the transfer of these assets to chosen beneficiaries. It is both a way to provide for those you leave behind, and the most efficient way to distribute your wealth.
Dulcinea's Insight
- Without estate planning, the laws of your state determine who gets your assets, and a substantial portion of them may be lost to taxes. Currently, taxes can claim up to 45 percent. The estate tax is scheduled to disappear in 2010, but that decision could very well change as the date draws nearer.
- Estate planning is a common and essential financial practice. For this reason, most sites operated by financial magazines and banks have information for consumers on how to plan their estates effectively. In this section we've assembled some these articles that provide an introduction to estate planning.
Dulcinea's Picks
For an overview of estate planning …
Money Magazine at CNNMoney.com
provides lessons will on how to assess what you have, help you figure out if you need a living will or health-care proxy, learn about power of attorney and setting up a trust fund, and even show you how to give away some of your assets before you die. Check out the estate-planning lesson in Money101 section, to learn about trusts and charitable gifts.
Smart Money
has a net worth calculator in its estate-planning section, along with estate-planning articles explaining topics such as the "grandparent tax." You can find information about life insurance, charitable giving, and a handy worksheet to help you figure out how much your estate will be taxed.
For estate-planning legal issues …
FindLaw
provides legal information for the public. In its estate planning, wills, and trusts section, you'll find detailed information about wills, trusts, estate laws, and estate taxes. For the estate-planning novice, the "planning 101" section might be of use. Here you'll find what will happen if you die without a will; what information you need to gather to begin planning your estate; and an estate-planning checklist.
Wex
is published by the Legal Information Institute at Cornell Law School and provides a mix of dictionary and an encyclopedia for legal issues such as estate planning. This section of Wex breaks up estate planning into federal and state material; you can find links to the Web sites of organizations that can get you started planning your estate.
Free Advice
, a site launched by the former Chief Brokerage Officer of Metropolitan Life Insurance Company and President and CEO of MetLife Marketing Corporation, teaches you about estate planning from the legal perspective. You can choose to read about the topics that pertain to you, or you can check out the entire 23-page guide. You can also use the site to get a free online case review from an attorney.
For estate-planning tax issues …
The Internal Revenue Service
has an Estate and Gift Taxes section that will give an overview of what these taxes are, as well as let you know how these taxes have (and are scheduled to be) changed over the years. You can also find links to the actual forms you'll need to fill out and to publications with specific details about gift and estate taxes.
Wills, trusts, and appointing legal guardians
Someone is going to get your worldly belongings after your death; who that is will be up to you, or the courts. These sites have advice on how to leave your estate to your beneficiaries by using wills and trusts, and also how to ensure that your young children have been assigned a proper guardian.
Dulcinea's Insight
- If you have a 401(k), a pension, or an IRA, you've probably already appointed someone as a beneficiary of those funds.
Dulcinea's Picks
For sites with resources for both wills and trusts …
The Motley Fool
has an article, "Will or Trust?" that may help you determine which of these two methods is best for transferring your assets.
Nolo
has a "Make a Trust" checklist and a "Make a Will" checklist to help you plan to leave your estate to family and friends.
LegalDocs
doesn't win any points for its design, but does provide some examples of completed short-form and long-form wills along with a codicil (or amendment) to your will. You can pay to see examples of more complex documents if you need them. Just looking for an overview? There is also a section titled "Last will and testament basics" that will give you a starting point process.
For wills …
Nolo
's "Wills" section will guide you through all steps of the decision making and execution of your will. Through a series of articles, this site will answer some common questions about wills such as, "Do I need a lawyer to make a will?" and "What you can't, or shouldn't, do in your will", even information about disinheriting family members.
For trusts …
FindLaw
has a comprehensive trust section that provides a basic introduction, a discussion of who needs to set up trusts, advice for selecting a trustee, and much more. Use the links midway down the page to access the different articles.
To choose a legal guardian for your dependents …
ExpertLaw
has a short and informative article describing the duties of a legal guardian and the process of appointing a legal guardian.
FindLaw
provides a list of 10 things to think about when choosing a guardian for your child. Also on this site you'll find explanations of the basics of guardianship like the difference between temporary and testamentary guardianship, how to establish a guardianship, and some examples of guardianship law in certain states.
Nolo
has an article about how to choose a legal guardian for your child that brushes upon the following issues: if you and your spouse can’t agree on a legal guardian; if you don’t want the child’s other parent to raise him or her should you die; and what to do if you have a same-sex spouse whom you’d like to raise your child if you pass away. Make sure to scroll to the bottom of the first page so that you can click through to every page of this article.
© 2012 Dulcinea Media, Inc.
