Estate planning and intestacy refer to two different aspects of financial planning. A proper financial planning plan includes making an appropriate Last Will and Testament that includes the entire of estate of the grantor or estate owner for proper distribution among the heirs or beneficiaries of the estate. If an estate owner dies with a proper Last Will and Testament in place he/she is said to have died testate. If the estate owner failed to create a Last Will and Testament before dying, he/she is said to have died intestate. If the owner of an estate dies but his/her Last Will and Testament does not include or make allotments for the distribution of the entire estate, the estate included in the will is disbursed according to the stipulations outlined in the will. The remaining estate not included in the will is considered, "Intestate Estate", and is transferred to probate court for disbursement according to local inheritance or inheritance laws.
Estate planning and intestacy laws will see to it that the inheritance property is distributed among the heirs of the deceased. However, for the distribution of inheritance money according to the wishes of the estate owner a proper will is the best assurance of the desired distribution of assets.
Estate planning is an essential part of any sound financial planning business plan but estate planning needs to be thorough and include the entire of estate so as to leave nothing to chance or local estate planning and intestacy laws. Appropriate estate planning can reduce inheritance taxes and decrease the time and expense of the probate process.
Estate planning tools available in a properly designed financial plan can include:
- Last Will and Testament
- Revocable Trusts
- Irrevocable Trusts
- Charitable Trusts
- Powers of Appointment
- Asset or Monetary Gifting
- Powers of Attorney
- Living Will
- Family Limited Partnership (FLP)
- Durable Medical Power of Attorney
Estate planning and intestacy laws will make sure that an estate is distributed to the heirs and beneficiaries of an estate but estate planning will assure that the estate is distributed according to the specific wishes of the estate owner and not be subject to the local intestacy laws of that particular jurisdiction. If you have any questions regarding estate planning and intestacy laws, contact an estate-planning lawyer to discuss your estate planning options.
