BARRIER TO ESTATE PLANNING

August 17, 2023 3 min read 63 Views

Spread the love

If you’re among the two thirds of Americans who haven’t created an estate plan, you might want to get started now. Even if you don’t think you have enough assets to leave to anyone, you’ll gain peace of mind by completing a last will and testament- as well as a living will stipulating what your end-of-life or care preferences are if you become incapacitated.

A CHECKLIST FOR ESTATE PLANNING
By following this estate-planning checklist, you can rest easier, knowing that your final wishes will be known.

-Create an inventory of your tangible and intangible assets. This should include vehicles, real estate, financial accounts and investments, health savings accounts, life insurance policies, business ownerships, retirement plans, collectibles and more. Include the estimated worth of each item. List any outstanding liabilities, such as mortgages, lines of credit or other debts that you haven’t paid off yet. This will help the executor of your estate notify any creditors in the event of your death. -Plan for your loved ones’ needs. This includes writing a will if you don’t already have one. When you write your will, name a guardian for your children, as well as a backup guardian. Determine if you need life insurance, and how much.

Rest Easier, Knowing that your Final Wishes will be known

-Clarify your legal directives. Executors, trusts, financial power of attorney, and medical care directives are important parts of estate planning. An executor is the person, bank, or trust company named in the will to carry out your wishes and settle the estate. A trust designates where portions of your estate go, eliminating the need for probate. A financial power of attorney designates someone to manage your finances if you become unable to carry out those duties yourself. A medical care directive- or living will- details your medical preferences if you are unable to make decisions.

-Review your beneficiaries. Don’t leave beneficiary sections blank in your paperwork. Check older documents and accounts to see if your beneficiaries need to be updated. Also, name contingent beneficiaries in case a primary beneficiary dies before you do.

-Regularly reassess your estate plan. Circumstances change, whether it’s marriage, divorce, a growing family, death, tax laws, or financial situations. Updating your estate plan may take some time but will be worth it.

-Consider whether you should hire a professional. Will-writing options are available online and through software programs and may be a good choice for those with smaller estates and uncomplicated plans. They generally account for IRS and state-specific requirements and use an interview process to walk you through the steps. Make sure you research first to ensure they comply with federal and state laws. If you need more peace of mind than a software program, you may benefit from consulting a professional. If you’ve postponed your estate planning because you’re young or don’t have much for someone to inherit, consider how difficult it may be for your survivors to go through probate, which is an expensive, time-consuming, and intrusive process.