Nobody enjoys thinking about their mortality, and sorting through legal documents is not what most people would call a good time. This hesitation makes sorting through legal documents about your eventual death seem dangerously stressful and, perhaps, dull.
That is probably why half of us do not have a will of any kind.
Relax. We have got some tips that help take the stress out of preparing for your future.
Keep reading to learn five essential tips of estate planning.
Know Your Worth
The most essential first step of estate planning is doing an inventory of all your assets.
Your total estate worth is so much more than just land you own. Any retirement fund, life insurance plan, Roth IRA, stock investments, collector’s items, and even your debt count as part of your estate.
Keep a detailed account of all your debts and assets in a safe place with the rest of your estate planning documents. Wherever you decide to keep these documents, make sure your family can quickly get to them.
Lawyer Up
The next thing you will need is an estate planning attorney. They will be able to help you navigate things like property taxes and drawing up your will.
Speaking of attorneys… Identify who you want to have power of attorney over you medically and financially.
Okay, so having power of attorney does not make you a lawyer. But whoever you assign power of attorney will be able to make decisions for you if you become unable to make those decisions for yourself for any reason.
Ex: If you are rendered unconscious in an accident, someone needs to be able to give consent for critical medical procedures.
Where There is a Will…
Your living will and last will might be the most important parts of your estate planning.
A living will is also called an advance directive. It gives detailed instructions for your medical and financial power of attorney, so they know how to meet your needs best while you are still alive.
Your last will and testament give detailed instructions for what to do immediately following your death.
Plan Your Funeral, So They Do Not Have To
One of
the most helpful tips of estate planning is putting money aside for your
funeral arrangements in advance.
Do you want to donate your organs to people who need them? Would you prefer to
be buried, or cremated?
Spell out your preferences, so your family has less to worry about.
Trust Your Beneficiaries
You get
to pass on everything you own to the people you love two different ways:
With a trust; this dictates exactly who gets your property
without going through a public court. Your trust determines who gets your car,
your house, etc.
The people you name as beneficiaries will inherit the assets
you own that are not physical pieces of property; including, bank balances,
stocks, investments, etc.
More Tips for Estate Planning
For even more helpful legal information and tips of estate planning, stay tuned for more updates on our blog.
Do not be shy. Ask for a consultation with one of our skilled legal professionals today.
