For some of the people living in Tennessee, collecting art is a passion, not just a hobby. Accordingly, these people spend a considerable amount of time searching for beautiful works of art to add them to their collection. However, plenty of art collectors don't take the time to think of what would happen to their precious art collection when they pass away.
A special needs trust could be an effective estate planning tool for parents of disabled children. This type of trust can be used to help maximize the child's quality of life both now and into the future when a parent may no longer be around. By placing assets inside of the trust, a child can have access to funds for entertainment and other purposes without losing access to government benefits.
Estate owners in Tennessee have the right to revoke a power of attorney (POA). This is true even if the POA was originally intended to be durable. At any time, a grantor can write a letter saying that the document has been terminated. The termination becomes official as soon as the attorney-in-fact receives it. It is important to note that the attorney-in-fact has no right to maintain his or her power after it has been revoked.
People in Tennessee who are creating an estate plan can take steps to avoid three common mistakes. The first is not leaving a list of all assets and how they can be accessed. Even people who create a list can make the mistake of leaving important items off. From bank to brokerage accounts and life insurance policies to digital assets, such as Instagram accounts, people may have many assets that are protected by passwords as well as other personal information ranging from names of pets to first teachers and more. On top of that, there may be additional assets that have sentimental value. Everything should go on the list.
Tennessee residents who are going through the estate planning process may face a variety of challenges. One of them might be determining how to pass assets such as jewelry or artwork. These types of assets tend to be less liquid, and they also tend to be harder to value or keep track of. However, it is critical to come to a proper valuation whether an asset is to be transferred or sold.
Small business owners in Tennessee should make sure that they have estate plans in place that specify how their companies are to be handled when they die. In situations where small business owners die without a will or an estate plan, what happens to the business that is left behind will be determined by the laws in which the decedent lived.
One of the most significant mistakes Tennessee residents can make regarding an estate plan is not having one. Individuals who die without an estate plan create a situation in which their loved ones will not receive their inheritances as they intended. Family conflicts can arise, disbursements can be delayed for a long time, and the estate may be subject to additional taxes that otherwise could have been avoided.
Many Tennessee residents are well aware of the financial and practical benefits of estate planning. By preparing key documents, estate owners can help their beneficiaries to avoid unnecessary taxes, probate costs and associated delays. In addition, people who plan for the future often feel a profound sense of peace of mind knowing that their loved ones will be provided for.
A major problem that many Tennessee residents make when planning for the future is failing to appoint the right people for various roles in their estate plans. These roles could include trustees, executors, powers of attorney and smaller roles including those appointed to manage Social Security payments.
By using trusts as part of an estate plan, a Tennessee resident can ensure that certain assets are managed and distributed according to their wishes. Those who have been uncertain about using trusts may be interested to know that due to the recent rise in interest rates, certain types of trusts, such as GRATs and CLATs, can be very beneficial to grantors.