4 Essential Estate Planning Tips Everyone Should Know About

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If you previously thought of estate planning as something that’s reserved only for the wealthy, you’re wrong. Today, estate planning is a very important process for anyone to go through, especially when you’ve acquired a number of assets in your lifetime. 

Estate planning is the process of making a written document (usually a will) that details what you want for your estate and how you intend to pass on the ownership of assets to your children, beneficiaries, or heirs. This is often done to ensure that if someone passes away, their assets will be distributed fairly.

Although this type of plan covers a range of different aspects, it’s most commonly designed to give support to married couples who have children. But it’s also equally important for those who are single parents.

A good estate plan can go a long way towards helping families to plan and prepare for their future. Unfortunately, a lot of people don’t have any real knowledge about how to get started with this sort of planning. So, here are some simple tips that may help you.

  1. Meet With The Professionals Concerned

The first step towards creating a good estate plan is to assemble the right team of professionals. In most instances, this team will include your estate planning lawyer and your accountant. The lawyer is the one that’s well versed with the intricacies involved in estate planning, while the accountant can help you work through your assets and decide which of these ought to be a part of your estate plan and what wouldn’t.

While there are those of you that may prefer to go through a DIY estate planning process, this isn’t highly recommended. Remember that this is a very important document that affects your heirs, once you passed away. Thus, you can’t take any risks in making mistakes.

As you assemble your team, the goal is to ensure the proper distribution of your assets with as little confusion as possible.

  1. Create Or Update Your Will

A will is necessarily a part of estate planning. For starters, you need to ensure that you have an updated one. Thus, make it a point to update it regularly while you still can. This regular updating process can help ensure that your will gets accepted in the probate court. What is probate? Learn more about it by visiting www.milehighestateplanning.com/probate.

The advantages of making a will are numerous and the disadvantages are few.

Having a will provides you with peace of mind since you know that you’ve recorded all your wishes in writing, making them legally binding. Because they’re written, it’s going to be difficult for anyone to contest its legality.

The disadvantages include the time and effort required for creating the will–the fact that the process can take up to a year and the potential for confusion when preparing it. Still, the advantages of making a will greatly outweigh any disadvantages.

Not having a will is like not planning for your death. You may be vulnerable to wrongful death claims and may not be able to obtain the financial support you need during your last days. You may also be vulnerable to lawsuits by others who are still living if they discover your absence. 

  1. Be Sure That You’re Documenting All Your Wishes

As you go through the estate planning process, it’s important that you take your time in going through each piece of information that’ll have to be included. This is why it’s important that you take the time to go through this process carefully and never rush anything. 

Ensure that you’re documenting all your wishes in detail. This should also include important matters, such as:

  • Naming all the individuals that’ll have access to all of your healthcare information in your absence.
  • Assigning people that are going to make crucial decisions regarding your healthcare when you become unable to decide for yourself.
  • Providing clear instructions about the medical treatments that you want and don’t want to go through.
  • Assigning the proper individuals who are going to make important financial decisions on your behalf.
  1. Complete All The Necessary Elements Of Estate Planning

To ensure that your estate plan is viable, you’ve got to comply with the necessary elements of estate planning. Along with all the other necessary information that they’ll identify as necessary, your lawyer should be able to go through these with you. For instance:

  • Naming The Right Beneficiaries

When drafting an estate planning plan, make sure the beneficiaries are appropriately identified and the beneficiaries’ identity is documented. There are certain documents that are only passed through beneficiary designations, such as your pension, life insurance, and retirement accounts.

  • Set Up The Proper Guardianship For Minor Children

This section is very important especially when you’re a single parent, or if you and your spouse have separated or divorced. Make it clear who you assign as the proper guardian of your minor children. 

  • Name The Administrator Of Your Estate Plan

The administrator is tasked with executing your wishes once you’ve passed away. In general, the administrator of the estate must be a resident of the state and can prove that they have enough knowledge and experience in the field of estate planning. 

Once this is done, the administrator will then prepare the documentation that’s essential for filing the appropriate paperwork.

Conclusion

Now that you know how to go about with estate planning, you’ve got no reason why you shouldn’t go through this process. All that’s left for you to do now is get started with estate planning, not just so you can protect your assets, but also giving you the assurance that they’re going to the heirs who rightfully deserve them.

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