If you think that only the rich and wealthy should bother with estate planning, you might want to think again. Your wishes during your end of life might cause confusion and emotional stress for your loved ones if you don’t have a sound estate plan in place.
Here are a few tips on how to prepare for your estate planning.
List Down and Distribute Your Assets
Start by listing down all of your assets that will include your investments, financial accounts, real estate, and property. Jewelry, boats, motor vehicles, and other properties of value are examples of personal property.
Your investments can include bonds, life insurance policies, retirement accounts, stocks, and others. Be sure to include all liabilities and debts to take care of their payments after your death. You can work with an estate attorney to make it easier to plan and work on these legal documents.
Identify Your Beneficiaries
Most estate plans indicate who will receive the person’s properties after death. You can use a living trust or will to name your property’s beneficiaries. Many people use their will to name their beneficiaries since this is simple. Using a living trust can be used as an alternative to avoid probate and get the chance to have further levels of planning.
Prepare Powers of Attorney
Powers of attorney are legal documents that allow someone else to choose to act in your behalf during those times when you cannot. A power of attorney is especially crucial for the elderly and those who want a person they trust to act in their behalf. Medical power of attorney and financial power of attorney are two types of power of attorney.
Plan Guardianship for Young Children
The estate plan can also be used for naming a guardian who will look after your young children if ever you and the other parent of your children are no longer available. You can also name a conservator or a property manager to look after the property of your kids.
Store Important Documents Properly
Be sure to itemize all of your assets that include locations and numbers. Have a printed copy of your list then keep this with your healthcare directives, insurance policies, wills, and other essential documents for faster reference.
Trusts and Wills
Wills are common tools for estate planning since these are simpler, cheaper, and more popular. Your will states who you like to inherit your properties and might also name the guardian who will look after your young children if ever something happens to you or the other parent.
The state law determines who will get your property if you failed to make a will prior to your death and a judge is going to decide who is going to raise your kids without your input.
It is not enough that you just have an estate plan in place. You also need to review it every now and then. A new baby, appointees or children getting older, or a change in marital status are only some instances that will require you to change or update your estate plan.