Posts tagged "Estate Planning"
Business owners in Connecticut and elsewhere may not have a plan for what happens to their companies after they die. This can be problematic if there are no family members or trusted employees who can step up and run the business. Even if someone is willing to run the company, it may take time and effort to convince employees and customers to remain loyal to the organization. In many cases, the owner of a small business is also the face of the brand.
Connecticut residents and others who are married should have access to financial records and other critical household data. In the event that a spouse passes away or becomes critically ill, it may be necessary to gain access to a computer or to an online bank account. Not having access to a device or an account may make it impossible to deactivate social media accounts or put a stop to automatic bill payments.
Many wealthy people in Connecticut have created key estate documents like wills and trusts. After all, the ability to pass assets on to benefit loved ones in the future is a major motivating factor for people to develop their wealth. However, creating an estate plan is often the first step in an ongoing process that can help people to make sure that their future vision is intact. While many people may want to avoid unpleasant conversations about death, open discussion about estate planning issues can help to prevent future disputes and family problems, especially when significant assets are involved.
Simply having a will on file doesn't automatically mean assets will be transferred as intended when the time comes to fully execute an estate plan. This is because assets need to be properly titled to ensure they'll be distributed as per desired wishes upon the death of an estate plan's creator.
In a perfect world, proactive Connecticut parents or grandparents with high-net-worth estate planning needs would have their wishes respected by designated heirs or beneficiaries when they pass. Unfortunately, the reality is that squabbling siblings, spendthrift heirs and antagonistic step-relatives can sometimes complicate matters and contribute to legal headaches or costly court battles.
Estate planning is not something that many people in Connecticut and elsewhere look forward to. Some people may lie to themselves to justify not creating a plan of their own. One lie that people common tell themselves is that they don't need a will because they don't have a lot of money. The truth is that a will can be helpful even a person does not have any money or assets of any kind. This is because a will can dictate who obtains guardianship of a minor child or whether an individual is cremated or buried.
A trust can be a powerful estate planning tool for a Connecticut resident. It can protect assets from creditors as well as minimize estate taxes owed. However, it is important that the right person is chosen to oversee that trust. In many cases, a spouse is not going to be the ideal choice to act as a trustee. This could be especially true for those who are in a blended family.
One element of estate planning some people in Connecticut may overlook is sharing passwords with an executor or family member so that online accounts can be accessed after a person's death. This issue does not just affect family or other heirs. As one example, the founder of a cryptocurrency exchange died suddenly in December without sharing the necessary password to access clients' investments, and there may now be $190 million of inaccessible cryptocurrency.
Parents of special needs children in Connecticut may wish to take special care when it comes to making their estate plans. There are certain types of plans that can help to provide support and protection for people with special needs throughout their lives. This can be especially important because kids with special needs may become eligible for different types of benefits that allow them to receive the care that they need. Some people may be unsure about how to plan for the future because they are unsure of the amount or type of professional support their children may need in the future.
Many single Connecticut residents without children neglect to create an estate plan. However, estate planning is important for all adults. Two of the most important items in an estate plan are a power of attorney and a health care proxy. These function while the person is still alive to ensure that agents are appointed to take over financial and medical decision-making in cases of incapacitation.