In the Virgin Islands, a will is a necessary part of estate planning that all estate owner should create first. The document divides the owner’s wealth and assets among their family. A financial advisor can explain vital details about creating and managing a will.
Assigning Assets to Minors
In an estate owner’s will, they create assignments for their minor children. If the heirs are still underage when their parent dies, some stipulations should apply and prevent others from taking advantage. For instance, if the minor has a new guardian after their parents die, the stipulations prevent the guardian from taking or using the assets. The protection ensures that the child gets full use of their inheritance when they become an adult.
Protecting Assets from Probate
The probate process enables creditors to place a lien against the estate and collect outstanding balances. If this happens, the estate could remain in probate for years. By planning ahead and taking care of outstanding balances, the owner prevents their heirs from facing all the red tape. The process enables them to avoid threats and lawsuits connected to the estate.
Tax Implications Due to a Will
Tax implications connected to will start with property taxes and inheritance tax. The estate owner can create a separate account to pay the taxes. Some options may also include an irrevocable trust to separate assets from the estate. When the owner does this, the heirs could avoid inheritance taxes altogether. They would be required to pay property taxes for specific assets.
Naming an Executor
An executor for the estate reads the will to the family and explains all assignments. It is usually a family member, trusted friend, or an attorney who acts as the executor. They help the heirs transfer property into their own name and collect monetary assets.
In the Virgin Islands, a will defines the final choices of the estate owner. He or she explains what family members get their assets and properties. Deeds and titles are transferred according to the details found in the will. Estate owners who are ready to discuss the financial repercussions of a will contact Cane Bay Partners for information now.