According to multiple money experts, America is facing a retirement crisis. Many do not have enough savings and Social Security benefits will not be able to cover the cost of living of most Americans in retirement. Unfortunately, many people prefer not to talk about death so they refuse to think about estate planning for the welfare of those they leave behind.
Yet, death is inevitable and whatever you own should be protected to ensure that the people you love are taken care of according to your wishes. According to Greg Stevens of Cabot Wealth, “everyone needs a will.” He adds that the will should be updated regularly. This is one way to transfer wealth and assets, health care, and other proxies smoothly to the next generation. …
Many people don’t like to talk about death but they will if it has anything to do with protecting their assets – including digital assets. Digital assets are your online accounts, digital currencies, online accounts, passwords, digital files, user names, and any Terms of Service Agreements (TOSA) that you signed. With the growth of digital technology and use, these assets are expected to be worth over US$5 billion by year 2020. You will need and should have a will drawn up to protect these assets either after death or in case of incapacity to ensure that your loved ones gain legal access to these assets.
The First Step: Assigning Assets
Before anything else, you will have to list down all your digital and traditional assets since your will or estate documents will incorporate all assets. You will need a fiduciary, an executor for your traditional assets, a personal agent with power of attorney in case of incapacity to make decisions, and a trustee. These are the individuals chosen by you to manage all your assets according to your wishes so it is important to select them wisely.
The main issue facing digital assets is the fact that they are not tangible assets and exist primarily on the Internet. The individual tasked to manage your digital assets will have to deal with extenuating circumstances far different because these digital assets may or may not have monetary value. In fact, they are valuable to you because they represent something sentimental to you like a memory or a milestone.
The Second Step: Understanding the Laws on Digital Assets …
Probate is a court case that one files against themselves on behalf of their creditors.
Here’s some history of probate: The way property passes upon ones death has gone through various stages over time. In the middle ages, there were certain rules set by the king that would say where the property was to go and that was not able to be changed with a will or a testament. People just had to deal with the fact that their property was going to go to certain people when they died. With the introduction of the will, one could choose where the property went, but there was a need to have supervision by the King’s court so that the sovereign could always keep track of where assets ended up. The probate process has developed from those ages to a process that still needs court involvement.
In probate, when someone dies, there is a court case opened and notices are sent to all people that could receive assets of the deceased person. This notice is an option and an invitation to contest any will that might be presented to the court. There is also a notice that is published in the newspaper for anyone that thinks that the deceased person owes them money to come forward and make a claim against the estate. As the claims come in and everyone is being notified, the Personal Representative (a.k.a. Executor) puts together an inventory of everything that the person owned at the time of their death. That information is filed with the court and becomes a public document. Therefore anyone can find out what the deceased person owned at the time of their death. After …