As we’ve stated, wealth management services inherently cover estate planning to ensure that your wealth is utilized in a way that you’ve wished after you’re deceased. However, one major aspect of this process that stands separate from standard estate planning is the navigation of family allowance laws. A family allowance allots your family a certain amount of money of which they are immediately entitled to, once probate starts.
What Family Allowances Covers
Different states have different family allowance laws
Each different state has its own specific laws, regarding family allowances. This means that the amount of money that a family receives from a decedent’s estate is going to vary, on a state-by-state basis. For example, in Florida, a surviving spouse and all children who are still minors are entitled to what the state defines as a “reasonable” allowance from the estate of the decedent. However, this amount may not exceed $18,000. The amount that can be allotted to your family changes greatly, depending on the state.
In Utah, family allowances are part of an exemption from other claims to your estate, according to Utah Code – Title 75 – Chapter 2 – Part 4 – Section 404, which covers family allowance laws. According to this law, the only exemption that has priority over family allowance are the homestead allowance, which enables a spouse and children of the decedent to claim their homestead property, and ensure that it is safe from creditors. Klingler and Associates can help you navigate these tricky state laws to ensure that your family gets the allowances that they need and are deserving of.
Your family will take precedence over creditors
The primary advantage, and principal purpose, of family allowance laws is that they protect your family from getting nothing after you die, in the event that creditors are obligated to any amount of your estate. Although this isn’t a permanent financial solution for the decedent’s family, it does guarantee that they will have a degree of financial support for a period of time.