Main Misconceptions About Estate Planning

Many individuals delay estate planning due to the fact that they believe it is too expensive or complex for them as well as not very important for their family. Nonetheless, estate planning does not certainly need to be tough, and the typical person can and should have an estate plan that is conveniently understandable and doesn’t cost a lot. In this post, McKoon, Williams, Atchley & Stanley explain main misconceptions about estate planning for Chattanooga citizens.

Misconception #1: Estate planning is only concerning money.

Although finances could be the main reason for creating a will or trust, estate planning influences family members far beyond the handling of funds. Such plans simplify the life for your relatives during a time of loss and despair. A well-balanced strategy permits you to share your wishes as well as values after your passing away, assists your beneficiaries stay clear of a lengthy as well as costly probate procedure, and reassures relatives that they are doing just what the person would certainly have desired. In the first place, estate planning is about family, legacy, and also love.

Misconception #2: Estate planning is expensive as well as lengthy.

As a matter of fact, it’s just the opposite. Regardless of the initial cost of involving a lawyer to draft records, great estate planning saves both time and money in the long term. Without an estate strategy, your heirs will be entrusted to sustain probate, which is prolonged and also entails lawyer costs throughout the procedure.

Myth #3: Estate planning is only for wealthy people.

Possibly the most usual estate planning misconception is that the common household does not have an “estate.” Actually, an estate describes things you have, such as a residence, a car, or a saving account. Establishing an estate plan not just offers direction, yet offers advice for loved ones throughout a difficult time. An estate strategy makes sure that:

  • Your financial resources are managed if they become incapacitated
  • Decisions concerning the health care will be accomplished as planned
  • Children and also other heirs will be taken care of

Misconception #4: Estate planning is not urgent.

An estate plan is necessary for individuals of every age. A comprehensive estate strategy consists of files to attend to medical care needs in instance you end up being incapacitated, it permits financial responsibilities to be resolved if you are not able to do so in situation of disability– short- or long-term. Most important, these records reveal your wishes regarding who must take care of your youngsters if you are unable to. It might not really feel urgent, however an estate plan is a very useful present to your family.

Misconception #5: If I pass away without a will, the state will obtain my possessions.

There are several reasons to prepare a will, but worry over the state’s taking your household’s inheritance must not be among them. If somebody passes away without a legitimate will, then state law works– and also every state has its own inheritance guidelines. Typically, the spouse and kids of the deceased was initially to inherit. In some states, a surviving spouse and small children share the dead parent’s properties, which could cause a little one’s inheriting a significant portion of his/her moms and dad’s properties. That alone is a great reason to create a Will: you probably don’t want your eight-year-old to acquire one fourth of your checking account.

So, do properties ever before go to the state? Yes, but only when no relatives can be found, which is extremely rare. As long as a family member can be situated, regardless of exactly how distant, the state could not inherit your assets.

Misconception #6: I require just a standard will.

A standard will, such as one that you could complete using the internet resources, is definitely much better compared to no estate strategy. As well as if you never get around to creating even a basic will, the state has a default strategy currently in place for you. Unfortunately, the state’s strategy may be completely opposite to what you want or dream. Plus, all your probate assets will refer public record, and complying with the state’s default plan will likely be slow as well as expensive.

Misconception #7: Married couples don’t require an estate planning.

Of course, if you have been married for a great amount of time and saved reliable and trusting relationships between each other, you may have already discussed the question of distribution the property. Although it seems to you quite simple, you should not skip estate planning altogether. Under regular situations, any kind of collectively held assets will pass to the surviving spouse after the death of the initial partner. Nevertheless, exemptions could easily arise, such as the following:

  • The surviving partner remarries
  • One spouse would like particular residential property to be transferred to their kids, their parents, or a sibling, for example
  • Both spouses pass away simultaneously

As you see, an estate plan is not just a “plan B” – it is a necessity, especially if you have minor children. If you live in Tennessee and own real property (such as a house) or have other property, it is important that you work with an attorney who is knowledgeable about Tenneesee probate law and will advise you on which estate planning documents will work best for you.

McKoon, Williams, Atchley & Stanley, PLLC is a firm that specializes in estate planning, probate, tax controversies, and business transactions. We provide comprehensive estate planning, tax planning, business succession planning, charitable planning and wealth transfer services to you and your families.

Estate Planning by Nick Youngson CC BY-SA 3.0 ImageCreator

How An Attorney Can Help With Buying Or Selling The House

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Purchasing a residence will most likely be the biggest and most considerable investment you will make in your life. It also entails the legislation of real estate, which is one-of-a-kind and has specific methods also issues, absent in other transactions. McKoon, Williams, Atchley & Stanley, PLLC realty attorneys are educated to manage these issues and have sufficient experience to manage them in Chattanooga, Tennessee.

Typically when buying a house, buyer and seller enter into a formal written contract for the sale, the purchase agreement. Nowadays, the seller is commonly represented by a real estate agent, who most often acts as an intermediary. After that, buyer then obtains a commitment for financing and the property is finally moved from the seller to the purchaser. The process seems simple, though without a legal representative, the effects could be a lot more tragic compared to purchasing an auto that becomes a lemon, or a stock investment that was unwise.

Avoid Vague or Unclear Terms

An attorney from McKoon, Williams, Atchley & Stanley, PLLC could help you prevent some common problems with a home purchase or sale. As an example, a seller could sign a brokerage agreement that does not deal with a number of legal problems. This takes place quite often; real estate agents frequently use basic formulations and standard forms, thinking they will cover all circumstances or will be quickly customized for unusual situations.

For Sellers

On the contrary, in the absence of an arrangement the selling party may end up being liable to pay a brokerage commission even if the deal fell through, or to pay more. If according to the agreement the seller has the right to work out on his/her own behalf, for example, you may avoid this issue. Moreover, hiring an attorney makes possible to negotiate your rights if for some reason you decide to withdraw the property from the market, or can’t deliver good marketable title.

The attorney will also review important documents like legal descriptions, mortgage loan documents, property survey and the title insurance policy. All these documents cumulatively make for a successful sale. Understanding them can be quite a task, so it is important that they be carefully reviewed and studied before being signed.

The seller must have the suggestions as well as assistance of an attorney with respect to a brokerage arrangement. Also if the contract is a standard one, its terms should be described to the seller and modified, if necessary. Our attorney will also determine if the agreement was properly signed.

For Buyers

It is very important to make sure that the contract addresses any specific issues that might affect the future use of the property. As a buyer, you have a right to understand what you buy.

Another vital service that attorneys perform is called a title search. Title searches are completed by or through attorneys, and their purpose is to make sure that the property being sold is free of any encumbrances, such as liens or judgments. The outcome of the title search is extremely important because it reveals whether the seller has the legal right to sell the property in question. An attorney will be able to provide this service much faster, and often with less cost because our real estate attorneys have working relationships with title search companies.

Consider a Consultation

Also if a legal representative is not required throughout the negotiations, the seller and a buyer each may need to talk to an experienced Chattanooga attorney to respond to vital inquiries, such as the tax consequences of the deal. To a seller, the tax obligation effects might be of essential value.

The Closing

The closing is happiest, but also the most serious event in the purchase and sale transaction. However, without a qualified attorney this process may be confusing and complicated.

A closing statement should be prepared prior to the closing showing the debits and credit reports to the purchaser and seller. The attorney will ensure that all the state and county laws are met before the property is even put on the market. This includes rules regarding the kind of paint in the house, the gas line or the fire protection system. There might also be last minute disagreements concerning delivering possession and personal property or the adjustment of various costs, such as gas and taxes. If you are the only individual there without a lawyer, your legal rights could be at danger.

By hiring an attorney you are hiring someone who does not have any direct involvement with the transaction and hence can view the transaction as a third person party. Our levelheaded counsel will ease you into the decision-making process.

Contact the attorneys of McKoon, Williams, Atchley & Stanley, PLLC

A broker generally serves the seller, and the lender is obtained by the buyer. Both want to see the deal go through, since that is how they will get paid. Neither can provide legal counsel. Contact a Chattanooga attorney to insure that you have someone to rely on during this important and complex process.