A loss of a loved one due to a terminal illness or sudden demise ignites financial and business mayhem and creates a crisis for entire families. In addition, the lack of information on the family financials and important documents further adds to the hardship. Years later families receive mail from financial institutions regarding fixed deposits, investment in stocks & bonds about which they had no prior knowledge or information. Having gone through the pain and agony of trying to find out the information after the loss of his father and with his in-depth technology experience, our founder set out to fix this problem and MyInformationVault was born. MyInformationVault allows users to securely store their important financial and other essential information, which needs to be passed on after their death or incapacitation. Users have peace of mind knowing that chosen recipients will only be given the information that is specified for them promptly after the user’s death certificate is verified. Planning for the financial and general well-being of your family after you pass away has entered into the digital age, and in conjunction with MyInformationVault’s easy to use service, here are a few other very important steps which need to be taken; estate planning, wills, and trusts.
Estate planning is important and can help prevent a lot of burden after the loss of a loved one. When understanding estate planning, the most important question is why create a trust? Over time, people have used trusts as a way of mitigating taxes which would otherwise be payable. There are four types of tax that can affect you and your estate. There is corporation, capital gains, inheritance, & income tax. This is why estate planning is so important. Believe it or not everyone has an estate no matter how large or small it may be. Your estate consists of things such as you car, home, bank accounts, life insurance policies, & personal possessions. Many individuals put off estate planning because they think that they do not own enough, they are not old enough, they are confused and they don’t know who can help them, or they just do not want to think about it. The point is you do not want to your family to be left in a difficult situation when losing a loved one. Emotionally it is a difficult time, and by limiting the amount of informational gaps, you can help make the process a lot smoother for you and your family. Benefits to estate planning include tax purposes, proper instructions for the dispersion of your assets, and peace of mind.
Estate plans begin with either a will or a trust. As mentioned, we are here to bring you clarity to this topic and help you understand that estate planning is not as complicated as most believe. A will provides instructions but involves probate. Probate varies from state to state, but a will must go through the state’s probate process before it can be distributed to heirs. Your executor must find, secure, and manage your assets during the probate process, which can range from a few months to over a year. Depending on the contents of your will and on the amount of your debts, the executor may have to decide whether or not to sell your real estate, securities, or other assets. A will can become expensive and bring vast amounts of legal, executor, and court fees. When creating a will, you must know that the court controls the process, not your family. Most families prefer a trust because you can avoid probate at death especially if there is property owned in other states.
Unlike a will, a trust does not end when you pass away. Assets can stay in the trust until your beneficiaries reach a certain age to inherit. Your trust can continue longer to provide for a loved one with special needs, or to protect the assets from beneficiaries’ creditors, spouses, and irresponsible spending. Although living trusts are more expensive than wills, you are able to avoid the court fees, which make them a better option.
Have you ever wondered what happens to your Facebook account or social media when you pass away? Due to this huge wave in social media and technology, it has become more common for all of us to have digital assets, and it’s important they are included in your estate planning. An average person has roughly $35,000 worth of assets stored on digital devices. These assets are at risk of being lost forever when the owner dies. Why not pass them on to your loved ones? Due to this recent concern many companies have put into effect, more customer friendly laws to help aid this issue. Ways that you can help is to take digital inventory; gather your passwords, and be specific when completing your power attorney. Authorize someone you trust to deal with your digital assets and online accounts. When estate planning, remember to realize that it does not matter how much or how little it is, it’s still important to be prepared.
We would invite you to visit www.MyInformationVault.com to try our free 14 day trial. With MyInformationVault you will be able designate WHO will receive your information WHEN they need it the most. Upload all of your important information for organization and dissemination. Don’t wait and plan ahead give you and immortalize your information…