There can be a variety of reasons why most people prepare for the disposal of their estate while they’re still alive. For instance, putting together an estate plan means protecting your beneficiaries from bad decisions, creditor problems, and outside influences. If you’re looking forward to avoiding family misunderstandings and exorbitant probate court proceedings, planning your estate can go a long way in securing your family’s future in the event of your disability or death. Here’s your handy guide to estate planning.
What Is Estate Planning?
Planning your estate can be one of the best financial decisions you’re going to make for the benefit of your loved ones. A thorough understanding of this subject matter can help you navigate the process in a right way.
Estate planning involves preparation of tasks that help manage a person’s overall assets in the event you become incapacitated or have died. It includes the inheritance of assets to the heirs and, most importantly, the settlement of estate taxes.
Whether you believe it or not, anyone including you has an estate to talk about. Try to look around you, as your estate may consist of valuable possessions such as your house, car, personal properties, bank accounts, retirement and investment accounts, furniture and even life insurance policy. It is, therefore, sensible to have a list of your assets so estate planning can be done efficiently.
To get the most out of the benefits of estate planning, being aware of some significant tasks is of utmost importance. These tasks include:
o Creation of the will
o Setting up of trust accounts in the name of the beneficiaries to limit estate taxes
o Establishment of a guardian for living dependents
o Appointment of an executor of the estate who is tasked to oversee the terms and conditions of the will
o Creation and updating of beneficiaries on insurance plans
o Setting up of funeral arrangements
o Making of a power of attorney to manage other assets and investments
o Reduction of the taxable estate by setting up annual gifting.
Under such circumstances, consider setting up your estate plans with the assistance of a licensed attorney who is knowledgeable in estate law. Having an attorney by your side can make estate planning more worthy of time, money and effort. Hire the best attorneys in your state and you’ll surely achieve the results you’re expecting.
How Do I Push Through With Estate Planning?
The way you’re going to distribute your estate when you die can depend on several factors. Estate planning is considered one of the vital tasks in our lives. Here are guiding principles to ensure the successful discharge of this responsibility in the best way possible.
- Don’t wait. Estate planning can be more worthwhile if you start early. No matter how complicated your assets are, the sooner you prepare, the better. Working out your estate as soon as possible can lead you to the most favorable outcome. Try to sort things out that may have created problems for you in the past, for instance, if you believe you’ve been abused in the nursing home, be sure to contact a lawyer immediately.
- Create a team. Preparing your estate has a lot to do with collaborating with your accountant, financial planner, and estate planner. By doing this, you’ll get the most favorable financial outcome for your loved ones. Don’t hesitate to consult these professionals on how to manage your estate plan properly.
- Consider the needs of your dependents. Remember that one of the primary goals of estate planning is to provide for your beneficiaries. This is why you shouldn’t forget to consider the needs and circumstances of your dependents during the process.
- Review and update your estate plans regularly. People’s lives are evolving. Marriages, childbirth, death, divorce, and separation, can happen at any time. In such instances, it’s essential to review your estate plans and make some adjustments if necessary to make it more updated.
Plan Your Estate Now
Look around you and figure out if it’s the right time to plan your estate. If you feel as though you’re ready to proceed with estate planning, we hope the information presented above can guide you throughout the process. Lastly, it always makes sense to speak with an attorney who can help you distribute your estate smoothly to your beneficiaries precisely as planned.
Timothy is a budding law writer who enjoys reading about the current happenings in the legal field. He’s currently applying his law knowledge into his works, which he hopes can be beneficial to his readers. He spends time with his friends and swimming in his spare time.