Inheritance and Estate Law: How Wills, Trusts, and Succession Planning Protect Your Legacy

 

Estate planning is the process of arranging for the management and distribution of a person’s assets during their lifetime and after their death. A comprehensive estate plan ensures that the client’s wishes are carried out, that their family and beneficiaries are provided for, that the tax burden on their estate is minimised, and that the process of settling the estate is as smooth and efficient as possible for those left behind.

 

At fetzeweerstra.com you will find a legal resource covering inheritance law, wills and trusts, estate administration, probate, and the full range of legal issues related to succession planning and the transfer of wealth across generations.

 

Why Everyone Needs an Estate Plan

The consequences of dying without a will (dying intestate) are almost always worse than the person would have wished. When someone dies without a will, their estate is distributed according to the intestate succession laws of the jurisdiction, which may not reflect the person’s actual wishes. A surviving spouse may receive less than expected, a domestic partner may receive nothing, charitable intentions may not be fulfilled, and assets that the deceased intended for specific individuals may pass to others.

 

Estate planning is a process involving the counsel of professional advisors who are familiar with your goals and concerns, your assets and how they are owned, and your family structure. At its simplest, an estate plan consists of a will that disposes of the estate’s assets and names an executor (the person responsible for administering the estate), together with documents addressing management of affairs during any period of incapacity.

 

Wills: The Foundation of Estate Planning

A will is the fundamental document of estate planning. It names the beneficiaries who will receive the estate’s assets, the proportions or specific assets each will receive, the executor who will administer the estate, and (if there are minor children) the guardian who will be responsible for their care.

 

To be valid, a will must be executed with certain formalities that vary between jurisdictions. In most jurisdictions, a will must be in writing, signed by the testator (the person making the will), and witnessed by at least two individuals who are not beneficiaries under the will. Failure to comply with the required formalities can result in the will being declared invalid.

 

Trusts in Estate Planning

A trust is a legal arrangement in which one person (the trustee) holds assets for the benefit of another person (the beneficiary). Trusts can be used to achieve a wide range of estate planning objectives, including avoiding probate, providing for a beneficiary who cannot manage assets independently, minimising estate and gift taxes, protecting assets from creditors, and facilitating charitable giving.

 

A revocable living trust, which can be modified or revoked by the person who created it during their lifetime, is one of the most commonly used estate planning tools. Assets transferred to a revocable living trust pass to beneficiaries at death without going through probate, which can save significant time and cost.

 

Probate: The Process of Estate Administration

Probate is the legal process through which a deceased person’s will is validated, their debts are paid, and their assets are distributed to beneficiaries. The probate process is supervised by a court and can be time-consuming and expensive. Assets held in a revocable trust, jointly owned assets, and assets with designated beneficiaries (such as retirement accounts and life insurance policies) typically pass outside of probate.

 

Inheritance Disputes: Contesting a Will

A will can be contested on several grounds, including lack of testamentary capacity (the testator did not have the mental capacity to make a valid will), undue influence (the testator was pressured by another person to make or change the will), fraud or forgery, and failure to comply with the formal requirements for execution.