This guide outlines how to avoid the common problems and pitfalls in estate planning. There are many reasons why people decide to leave their homes and other assets behind in their wills. Some do it out of a sense of responsibility for the next generation, some as a way to repay debt or make amends with loved ones. Others simply want to avoid taxes that could be incurred from transferring property during life. Whatever the reason, these decisions can have a major impact on the loved ones left behind.
What is estate planning?
Estate planning can be defined as “a set of legal strategies that aim to define, in life, the best form of succession, preserving or not the administration of assets in the hands of the founder of the estate.” In other words, it is the adoption of preventive measures by the owner of the patrimony in relation to the destination of his assets after his death.
Therefore, an appropriate estate planning for the specific case, allows the owner of the assets to avoid the long bureaucratic process of a litigious inventory, reducing the tax burden, among other examples, thus providing legal certainty to the heirs and even benefiting people not present in the role of the law and that it intends, in some way, to protect.
Although planning can be carried out through numerous instruments provided for by law, none of them is as effective as the creation of holding companies , as will be shown below:
Will: it has a disadvantage in relation to the other modalities, which is a limitation to the available part of the inheritance. Furthermore, the will does not admit reciprocity with respect to the spouse, that is, the spouses cannot test the same good for each other. This makes an important objective of estate planning unfeasible, which is the preservation of asset management in the absence of the spouse.
Real estate funds, private equity funds, escrow accounts and trusts: these are more complex structures. These structures involve legislation and can have high maintenance costs for inherited investments.
Creation of holdings (patrimonial or family): this is the best strategy, as it has the best cost-benefit ratio. Here, non-operational companies are created, that is, without activities, whose objective is to concentrate existing assets or others that may be acquired over a lifetime. The purpose is to avoid inventory, reduce tax costs and schedule succession in a less harmful way. In addition, it is possible to carry out tax avoidance work (lawful reduction of the tax burden) if compared with the hypotheses of inventory or donation. It is important to point out that they generate greater fiscal savings in the medium and long term, within the tax context.
Estate planning tips and strategies
Use Estate Planning Software
The best way to handle estate administration is with the help of estate planning law software. This software can help you keep track of all the assets and liabilities of the estate, as well as the beneficiaries and their contact information. It can also help you calculate taxes that are owed and file the necessary paperwork with the court. By using an estate planning platform, you can ensure that everything is done in a timely and accurate manner. This will help to reduce the stress that comes with dealing with an estate.
Get Organized
The first step in dealing with any kind of administrative task is to get organized. This is especially true when it comes to estate administration. Make sure you have a clear understanding of the assets and liabilities of the estate, as well as the contact information for the beneficiaries. This information will come in handy as you move forward with the administration process.
The last thing you want to do when you’re already grieving is to try and track down paperwork or assets scattered all over the place. Get organized as soon as possible by creating a system for tracking everything. This might include setting up folders for different types of documents or using a software program specifically for estate administration. It’s also a good idea to keep all important documents in one place, such as a fireproof safe. This will make it easier for you to find what you need when you need it.
Don’t Rush
It’s important to take your time when dealing with an estate. This is a sensitive time for family and friends, and rushing through the process can only add to the stress. Make sure you understand what needs to be done and don’t be afraid to ask for help from professionals or family members.
By taking your time and using the proper tools, you can make the estate administration process a little bit easier for yourself and your loved ones. People tend to think about estate planning only when they are nearing the end of their lives. However, it’s never too early or too late to start thinking about these things. The more prepared you are, the smoother the process will be. Because, let’s face it, no one wants to deal with estate issues when they’re already dealing with a loss.
Consult With A Lawyer
Dealing with an estate can be complicated, especially if there are disagreements among the beneficiaries. In these cases, it’s best to consult with a lawyer who can help you navigate the legal waters. A lawyer can give you advice on how to proceed with the administration of the estate and can represent your interests in court if necessary.
A lawyer can help with estate planning in many ways. They can help you create a will and estate plan, and can also help you resolve any disputes among the beneficiaries. They can also provide legal advice on how to proceed with the administration of the estate. If you’re dealing with an estate, it’s always best to consult with a lawyer. They can also help you deal with any legal issues that may come up. An experienced lawyer will be able to guide you through the estate administration process and can help protect your interests.
Summary
Estate administration can be time-consuming and difficult, especially when you’re dealing with the death of a loved one. However, by using an estate planning platform and staying organized throughout the process, it’s possible to make this challenging task easier on yourself. There are many ways to make this process easier. We hope these tips will help guide your way through some of the more complicated aspects of administering an estate. When in doubt, always consult with a lawyer who can provide you with the legal advice you need. It’s important that your lawyer has experience in these types of cases, as they will be able to guide you through the process and help protect your interests. We hope this article was helpful!
