When it comes to the estate, age is not a factor. Everyone has it! Usually, an estate is a combination of whatever you own. From home to Investments, the estate holds it all.
Estate planning ensures that your family/loved ones are provided with essentials when you are not present. Similarly, it holds numerous other benefits that guarantee a life without legal queries regarding the same.
Are you thinking about the basics of estate planning? If so, then we have got you covered. Read this article till last to know it all about estate planning.
What is Estate Planning?
Estate planning is where you nominate people who will get your assets and sustain your roles and responsibilities after you pass away. These individuals are called beneficiaries. You need to give a thought to who owns your assets (after your die) and how they should be distributed.
The primary aim of estate planning involves rendering the assets and property to the beneficiaries with ease. There should be minimal taxes, including gift tax, estate tax, gift tax, and others. Estate planning could be customized as per circumstance.
What is the Importance of an Estate Plan?
Moving on, estate planning is essential for distinct reasons. It includes
- Estate planning ensures that beneficiaries get proper in a hassle-free manner
- It helps to know the people or family members to whom you could pass your assets.
- It lessens the payable tax so that the property or assets can be passed to beneficiaries.
- It saves adequate money and time concerning the probate process. For that, it utilizes estate on devices that include living trusts and bank accounts. These bank accounts are ones where money is payable even after death.
- Also, it signifies the way you want your funeral to be and the source of expenses for the same.
- It specifies any desirable medical attention you need when you are unable to express it for some reason.
How to Create an Estate Plan?
Estate planning involves a lot of steps. However, here we have drafted an easy way for an estate plan creation
- First, combine all the assets and property and make a list of them.
- Check if you have life insurance to sustain your family after your death.
- Look for an estate plan and choose the ones that you require.
- Next, it’s time to decide on the guardian for your family. If you have someone who relies upon you and requires a guardian, select a guardian for them. In fact, you can also select a person who could make financial or medical decisions for you.
- Know and include the essential directives: Make sure you have the following directives in addition to others.
- Medical care directive
- A durable power of attorney
- Limited power of attorney
- Choose your Beneficiaries: You need to select the beneficiaries. These are the individuals who will own your asset or property after your death.
- These properties should be mentioned in the Will or Trust. Keep note that both Will and estate planning are different. In some cases, beneficiaries may be designated beforehand. It includes insurance policies and retirement plans.
- Look for a partner: You could look for a partner to create an estate plan. For that, an attorney for estate planning will be a great pick.
- Make a plan: When creating a plan, make sure to go through all the steps. Once done, finalize the plan.
- Sign and get it attested by the notary: Make sure to check the maximum number of witnesses required by the state.
- Let know your executor: Now, notify your executor about your plan.
- Secure the documents for estate planning: Keep it secure in a place that is accessible to your loved ones.
- Update it: You should update your estate plan after any life event. Likewise, an update once in 3 to 5 years is a good choice.
Estate planning requires drafting wills and trusts so that your assets can be passed to your beneficiaries. For such instances, legal counsels could curate a plan with living wills, durable power of attorney, and executor. Make sure to get one for feasible estate planning.