| Avoiding probate
Probate is the court action by which assets are transferred to heirs after a death according to the deceased's will or according to state law if no will was left.
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| Dying without a will
If a person dies without a will, his or her property will be distributed according to state law. Generally, all community property will pass to one's spouse, and separate property will be divided between one's spouse and children.
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| Minimizing estate taxes
Many taxes must be paid on behalf of the deceased after death. First, an income tax return must be filed for all income received by the deceased prior to his or her death.
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| Poor planning
While it's generally a good idea to pre-plan with a will or pre-arrangements for your funeral, be careful that your admirable intentions don't progress to poor planning.
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| Transferring property before death
There are various ways to transfer property before death and several advantages to doing so. Transferring property can be a way to avoid probate and its associated costs, as well as to reduce your federal income and estate taxes.
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| What if a loved one will not plan?
If you're having a difficult time convincing a loved one to plan for his or her departure, consider the following suggestions. Explain that you realize pre-planning for one's own death can be unsettling, but it's the responsible thing to do.
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