Have you ever thought about what would happen if you became incapacitated or died? What would happen to your home and other assets? Do you have a will and does your spouse know what your final wishes are? These are very difficult questions for most of us to talk about but think about how difficult these questions would be if your family was left to deal with them alone. An estate plan is a set of legal documents that will make sure that your final wishes are taken care of.
An estate plan allows you to:
- Designate someone who will manage your estate
- Name a legal guardian for your child
- Choose how and when your heirs will receive your assets
- Reduce estate taxes and administrative fees
- Provide for a succession plan or sale of a family owned business
Estate planning can be complex at times so it is advisable to seek advise from a competent lawyer specializing in Estate Planning. Some items you will want legal assistance with are:
- Prepare a will so that your assets transfer to your loved ones
- Check to make sure your accounts are titled properly
- Have a durable power of attorney so someone can make financial decisions in case you are unable to
- Draft a living will/health care directive to remove the burden of difficult end of life decisions from family members
- Make sure you have designated beneficiaries properly for your accounts
- Setup a trust for the transfer of assets, to cover estate taxes, and for the benefit of minors
Creating a complete estate plan provides you with the knowledge that your wishes will be carried out and your family and loved ones will not have to deal with these difficult issues alone.
Do you have common Estate Plan documents such as a will, durable power of attorney or living will?
Great advice -this is really something for me to start thinking about now that the year is ending and I’m getting married.
A simple will can be done by yourself for not much money. If you have acquired property and have a complicated estate, getting a lawyer involved is a good idea. Congratulations on the upcoming wedding Jeff!
Yes, estate planning is very important. I need to spend more time with this in the future, but as of right now, my wife is the beneficiary on everything, so I have put it off.
Don’t we all?
As you and your wife acquire assets over time a will becomes more important. State laws also impact disposition of your assets and in Arizona we have community property law which means that property acquired while married is split 50/50. Property acquired prior to marriage stays with the owner.
In addition, I want to set up my funeral arrangements for my wife and myself. It is always difficult to take care of those things when the loved one dies.
Good point KC. My Mother let us know her wishes before she passed away and it made the administrative part of death easy.
We barely came up with a will a couple years ago when we were taking a big trip to China. I just got thinking what happens to our pets if we don’t come back. Well, that what got me started. Great artcile! People don’t think about stuff like this untill it is too late.
Great point about pets Aloysa as many people have pets and might not think about that aspect when putting together a will or trust.
About twelve years ago I needed surgery and the night before realised that according to UK law if I die my part of the estate will go to my relatives rather than my husband (at the time I had step children but no biologically mine child). I got myself into such a state that I phoned my sister and made her promise that if something hapens to me she will keep some and return the rest,
Guess what? Immediately after I was out of hospital we made a will and changed it when I was carrying our son. It is all settled now. And I am isured up to my eyeballs (local expression, this one; means ‘loads’).
Great example as to how a will can give you peace of mind.
Thanks for the reminder. This is one of the things that is on our winter to do list. We need to get this done. We don’t have kids yet so it isn’t quite as critical but it is still something we should have in place.
I need to do a health care directive myself!
Don’t forget looking over any 401k’s, IRAs, and insurance policies that require a beneficiary form to be filled out. Just to make sure the beneficiary is the same person you want getting that money, since the designation takes priority over any will.
Luckily my mom and dad have they estate in order. I have copies of their wills, power of attorneys, and health directives. She also put a chunk of money in an account that will be used in case something happens and they will need cash but cannot get to it themselves.
I do not have a will yet. tsk, tsk….
I have a Last will and testament, living will, durable power of attorney and a trust. These documents are must have documents to ensure your estate goes to where you want it to go.
You are way ahead of the game! Don’t forget that your beneficiary designations take precedent over will and you need to make sure they are updated!
I have been delaying my estate planning for many years now. I really hope to get to complete this in 2012. I will be sure to follow your advice listed in this post. Thanks.