Make a will, written in clear and concise language, transferring your assets to your heirs.
The will should have clear provisions on how your debts will be paid. Outstanding debts will expose your estate to lawsuits that could deplete your entire nest egg. In making your will, you should include provisions that would answer the following inquiries:
1) Who will be the executor of your estate?;
2) Who will serve as guardians to your minor children?;
3) Should your spouse be given the freedom to transfer your property if he or she remarries?;
4) Who will get the remainder of your estate after the legitimes and specific bequests have been made?;
5) Should your estate pay off real estate and chattel mortgages before your properties are transferred to your heirs?;
6) Should debts owed to you be canceled?;
7) Should there be a priority list to determine which property should be sold first in case assets will be sold to pay for your liabilities?; and
How should estate and inheritance taxes be paid? Your responses to these questions will provide a smooth transition of your assets to your heirs and could perpetuate the asset protection devices you have formulated. The downside to a will is the necessity of a probate before it could be given effect. Probate is expensive, not private, and could tie up your assets because of the length of the pro-
ceedings.
Tags: Property