Bluffton South Carolina Estate Planning Law Blog

South Carolina residents can create an estate plan to ensure that their assets are managed according to their wishes after they have died. This can apply to cash, real estate and other assets such as heirlooms and art. For the hard assets, it is important that certain steps are taken to make that they are addressed properly in the estate plan.

Whether an asset or the revenue from the sale of the asset is to be bequeathed directly to an heir, it is necessary to know the fair market value of the asset. Having this number lays the foundation for the plan.

Although older people in South Carolina might realize at some point that they need to make final arrangements for their estates, young people could also prevent many difficulties by completing an estate plan. They might consider death far off or their estates insignificant, but estate plans could reduce problems when accidents leave young people incapacitated.

By executing a durable power of attorney, a young adult could establish who will manage financial affairs. This could come into effect if the person suffers a catastrophic accident or is out of the country for an extended period of time. Similarly, an advanced medical directive would allow a person to express wishes concerning the use of life support. In addition to making formal statements about medical care, a person could choose someone to make medical decisions during a period of crisis. Without documentation about medical issues, a person might be kept alive in a persistent vegetative state.

Estate owners in South Carolina have many options when it comes to wills and trusts. In some cases, they will choose to leave a portion of their assets to charity and a portion to their children. If a person chooses to structure their estate plan in such a fashion, it is important to consider the tax implications of how assets are actually transferred.

Often, an individual will include a charity in a will, trust or other estate plan document. While this is perfectly legal, it can also increase an heir's tax bill. Let's say that a parent leaves an IRA to their children and another asset for charity. In such a scenario, the child would be required to pay tax on the entire IRA. However, if a portion of the IRA was left to charity, the child would receive the balance and pay less in tax.

Financially concerned people in South Carolina are well aware of the long-term benefits that come with careful estate planning. Taxes can be lowered, assets can be protected and families can get some peace of mind. However, many estate owners forget about the short-term circumstances that could arise directly following a tragedy. For example, what happens to a child in the immediate aftermath of a parent's death before a court enforces the guardianship provisions can be written out in an estate plan.

This short-term, narrowly focused type of plan is sometimes referred to as a micro estate plan. It addresses issues such as who the kids will stay with temporarily and who should be immediately contacted. It can include any type of immediate action needed to help children in a time of need. For many parents, the goal of this document is to minimize the trauma their children might have to experience.