After a person dies, one of the things that has to happen is for their debts to be repaid. While some people will die without any major debts, the majority of people will have at least some, whether they're small credit cards or student loans.
As you create your estate plan, one thing you'll have to decide on is who you want to have as the administrator of your estate. Choosing an administrator, also called the executor, is one of the most important decisions you'll make.
Your will is important for many reasons, not just so that people you leave behind can receive your possessions. In fact, a will can do everything from helping protect your interests while you're alive to making sure the right people obtain your assets after you pass away.
Few people actually have to face an estate tax, but for those who have many assets, the question of how the estate tax could affect them remains. The estate tax is not the only tax that can affect an estate, to be clear. Gift taxes are sometimes ignored but can be substantial. State inheritance taxes are sometimes levied as well.
After your death, your debts must still be paid. Despite the fact that you're not there to pay them. Creditors may try to make your family members feel as if they have to pay these debts, even though they're not usually required to do so legally.
If you are left as an executor of an estate, your job is to administer the estate and make sure the distribution of assets goes smoothly. This is not always an easy job. You have many things you have to do before you can divide out property to the heirs of the estate.
When people typically think about the time after a loved one's passing, they know it can be difficult emotionally. That should be your first focus. However, there are also many complex financial realities that have to be addressed at some point, including the paying of taxes. It is important to know how this process works. Here are three common questions that people have:
When you were younger, you always had big ideas. Throughout your life you've worked several jobs and dreamed of starting your own business. After some schooling, innovative thinking and hard work, you are ready to start your new adventure.
Ohio residents may think of debilitating medical conditions like Alzheimer's disease when the issue of incapacity is raised, but car accidents or other unforeseen events can leave even younger individuals who enjoy good health unable to care for themselves or make important decisions. While becoming incapacitated may be difficult to talk or even think about for most people, taking steps to prepare for the worst possible outcomes in life could help to make things easier for friends and family members during extremely difficult times.
Ohio residents with estate plans should have an understanding of probate. It is a legal process that can validate the last will and testament left by a decedent. If the deceased has no will, his or her estate will have to go through the probate process.