Careful estate planning helps pass along assets to heirs

Careful estate planning helps pass along assets to heirs and minimizes legal costs and taxes.

The U.S. Department of Agriculture, as a first step, advises everyone to have a will. A will allows an orderly transfer of wealth to heirs with a minimum of confusion and expense. Wills also can perform other duties such as keeping a family business in operation, naming guardians for minor children, or creating trusts for their care until they are old enough to take control of family assets.

Wills are a basic tool. Parents should remember that it is important for each spouse to have a will. There’s trouble if the surviving spouse dies without one as only the longer surviving parent usually can name a guardian for the children.

It is estimated that over half of the persons dying have no legal will.

Before modern pension plans and Social Security, a family's wealth was in the land. Parents passed this along in a ‘‘family annuity” where children supported parents during retirement in exchange for title to family land.

These days, family assets are far more diverse and more difficult to transfer. A legal process called probate usually freezes assets while debts are paid and clear title is established for real estate. In addition to legal expenses involved, the delay and uncertainty of the probate process can be disruptive to the family.

Another method for providing for dependents is a trust. A trust gives a person (such as a family friend) or a corporation (such as a bank) the power to administer assets on your behalf. Trusts created in a will can support children while retaining control of family assets until they reach maturity.

Trusts created during a person's lifetime can distribute portions of the assets should the individual die while the trust is in effect. This procedure is advantageous for several