FOR quite a short while, the idea that Michael Jackson passed away without a Will created a frenzy. Personally, I would have thought of it as unfathomable.
Inheritance is the passing on of property, assets and debts after a person dies. In general, inheritances are passed on from parents to children or other family members.
Before the time of death or even way before, a person can create a will, which is an official legal document specifying which pieces of property and assets he would like to be inherited by whom. If a person dies without a will in place, assets are usually passed on to the children--or, if the deceased had no children, a close relative like a sibling or parent. If a married person dies but is survived by her spouse, an inheritance need not take place; the couple is considered one entity, and only when both die will assets need to be passed on.
A will is an important document for anybody, even though you don’t think you need one. It ensures that, after your death, your assets will be used in the way you deemed best and it avoids or minimizes family conflicts.
Wills allow people to split up their assets between family members in whatever way they would like, or to leave possessions or assets to other parties, such as friends, businesses or religious institutions.
It is not uncommon for wealthy people to leave large sums of money to charities, or for them to establish foundations in their name that will work toward goals they had felt were especially important.
It is a good idea for any middle-aged person with children to create a will, in the event of accidental death. A will assigns a guardian and custody for minor children- a very critical step in estate planning.
Other Considerations
Estate planning is an important part of leaving an inheritance to one’s progeny, especially if you have substantial amount of assets. When you die, your estate is subject to a federal estate tax before it is inherited by others, so planning ahead of time can help reduce the amount of estate tax owed at the time of death. One way to avoid estate tax is to spend money or give sums of money to relatives during the years preceding death.
Inheritance is playing an increasingly important role in the socioeconomic dynamics of the U.S.: Many people stand to make more money through inheritance than through their own achievements and work. As each generation leaves assets to the next, families with large amounts of wealth tend to accumulate wealth more quickly, creating a growing disparity between wealthy families and the middle class.
NOTE: Evangeline is not an attorney nor does she provide legal advice. She prepares legal documents at the specific direction of the client. She is a Legal Document Assistant (LDA # 397, registered and bonded in Los Angeles County, expires 3/23/2011).
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Evangeline can be reached at her marketing location at the Ground Floor of Eagle Rock Plaza (in front of Jollibee), 2700 Colorado Blvd., Los Angeles, CA 90041 or at her business address at 655 N. Central Ave., 17th Flr., Glendale, CA 91203, phone number (323) 356-3803 or (626) 319-4115.The purpose of this article is to provide information of general interest to our clients and prospective clients. The information provided is general in nature and should not be considered complete information on any product or concept described.
( Published on July 11, 2009 in Asian Journal Los Angeles p. C5 )
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