When a person receives inherited property it\’s usually a bittersweet situation because it means a loved one has passed away. In order to safeguard property and pass it along to others it\’s vital to engage in estate planning methods.

Chances are you inherited items because someone included you in their Will. This is one of the simplest forms of estate planning. Unless you\’re a multi-millionaire writing a Will only requires a few hours of time, but will save your family a lot of time and frustration when dealing with the probate office.

Inheritance gifts can be bequeathed in several fashions. One of the most common is gifting items in the last Will. Another is by setting up a trust. Certain types of property can be gifted using assignment of beneficiaries. Items can be given away while you\’re still alive, but need to comply with IRS guidelines to prevent having recipients subjected to gift tax.

When assets are gifted using a Will, the estate has to go through the probate process before property is transferred to beneficiaries. There are a few exceptions to this rule, such as when assets are placed into a trust or when estate values meet exemption guidelines.

Unfortunately, a lot of problems can arise with probated estates; especially when a person dies without writing a Will. The last will and testament is used to give directions to the estate agent and to outline which items should be gifted to beneficiaries.

The only items that have to be listed in Wills are property that has not been safeguarded using estate planning. For example, anything placed into a trust is exempt from probate because trusts aren\’t considered to be part of the estate.

Additionally, assets held in financial portfolios and bank accounts can be gifted to others via assignment of beneficiary. Account holders provide the names and contact information for each beneficiary, along with the amount they are entitled to.

Similar methods can be used to prevent titled property, such as real estate and motor vehicles, from having to be included in the Will. As long as proper protocol is used, valuable assets can bypass probate and be distributed to heirs before probate is completed.

Establishing beneficiaries not only aids in quicker distribution of inheritance property, but can also reduce inheritance tax. Another benefit is, there is less property placed in the Will which can lessen potential for heirs to contest the Will.

It\’s always advisable to consult with a probate lawyer or estate planning service to figure out which methods offer the most protection. Everybody has unique situations that require using different strategies. However, every person needs to write a Will, along with power of attorney forms and healthcare proxies.

Healthcare proxies are used to authorize a person to act as a healthcare agent and make medical decisions if you become incapacitated and cannot make decisions on your own. Furthermore, you can include instructions regarding any kind of lifesaving medical procedures that you do not want performed.

Power of attorney forms are necessary for authorizing a person to act as an agent for business or personal financial transactions. When selecting healthcare and power of attorney agents it\’s important to choose trustworthy individuals that will make decisions in your best interest.

Wills, power of attorney, and healthcare proxies are the basic elements of estate planning. These documents can lessen burdens associated with probate and guarantee beneficiaries receive the inherited gifts you want to leave for them.

Learn more ways to protect inherited assets from California probate liquidator and real estate investor, Simon Volkov. His extensive estate planning library provides information and resources about probate, trusts, estate and inheritance taxes, and much more at www.SimonVolkov.com.

Learn more ways to protect inherited assets from California probate liquidator and real estate investor, Simon Volkov. His extensive estate planning library provides information and resources about probate, trusts, estate and inheritance taxes, and much more at http://www.SimonVolkov.com.

Author Bio: Learn more ways to protect inherited assets from California probate liquidator and real estate investor, Simon Volkov. His extensive estate planning library provides information and resources about probate, trusts, estate and inheritance taxes, and much more at www.SimonVolkov.com.

Category: Finances
Keywords: inherited, power of attorney form, writing a will, estate planning, healthcare proxies, probate