While estate planning may not be the most gleeful, it can help protect your family and assets. There are a lot of myths that it is only needed for people who have substantial assets or are older, but it is an essential task for everyone. It is a good idea to take an inventory of all your assets and make sure beneficiaries are listed correctly on financial accounts, retirement accounts, and life insurance policies.
Getting Started
Estate planning can be complex, especially for those with significant assets or complex finances. In these cases, it may be worthwhile to work with an estate planning lawyer Hernando County, FL. One of the first things you need to do is compile an inventory of all your financial assets. This includes checking the values of bank and brokerage accounts, 401(k) and IRA accounts, and life insurance policies. It would be best if you also made note of how these assets are titled, including whether they are held solely in your name or jointly with another person. Having a clear picture of your assets will help your Executor and beneficiaries avoid some joint estate planning mistakes. For example, if you die without a will, state law will determine the beneficiaries of your estate, which might not be consistent with your wishes. It would be best to consider appointing a power of attorney and health care proxy. These legal documents authorize someone to act if you become incapacitated.
Gathering Documents
It’s never pleasant to think about your death or incapacity, but a solid estate plan makes sure that your wishes are carried out. It will also minimize the expense and hassle of settling your estate for family members. Organize and list your assets (properties, investments, and financial accounts) and their values. Having this information in one place will make it easier for your family to find and understand. Likewise, include the location and instructions for accessing your digital files and online presence. Ask friends and family for referrals to estate planning attorneys. It’s a good idea to meet with a few potential attorneys to compare fees and experience levels. Then select the one that best meets your needs. It’s a good idea to review your estate planning documents and update them periodically, especially after significant life changes. This can save your family the headache of sifting through outdated paperwork. It can also reduce the chance of errors that could result in costly consequences.
Choosing a Trustee
A strong estate plan is one of the greatest gifts you can give your family. It gives you peace of mind that you’ll leave behind an inheritance and possessions under your wishes, even if you’re no longer around. A big part of that is choosing the right trustee for your trust. While it may be tempting to choose a close family member, the fact is that the role involves substantial responsibilities and carries considerable liability. To make the best decision, list your possessions and their value, including your home, furniture, jewelry, cars and trucks, art and antiques, and power tools. Next, you should include:
- The names and account numbers of bank and brokerage accounts.
- 401 (k) plans.
- IRAs.
- Life insurance policies.
- Other financial assets.
You should also include notes about possessions that have primarily sentimental value, such as family pictures and other memorabilia.
Executing Your Will
Once your documents are complete, you will want to store them safely. It’s also a good idea to let your Executor know where your Estate Planning is located so they can locate it quickly when the time comes. Creating a solid estate plan can offer peace of mind that your most prized possessions will go to the people you love and in the way you want them to. However, a successful estate plan is an ongoing process that will change with your life, so it’s essential to revisit and update it regularly. Experts recommend reviewing your estate plan every 2 to 5 years and after significant life events like marriage or remarriage, births and adoptions, and deaths. It would be best to consider updating your plan after significant financial milestones, like a retirement or business sale, large purchases, or changes in your tax law.
