Are you planning to get your estate plan written down?
Have you carefully thought of it and calculated what all needs to be delegated to whom and how?
We understand no one wants to think of dying, but we have to face it and make sure that the people we leave behind do not suffer because of our negligence, which is why it is vital to have an estate plan designed, which you might think of being too complicated for your understanding, which is not the case.
Do you want your family to fight over who gets what and gets dragged into the court or worse get the estate decimated by the taxes?
Assuming with full surety that the answer would be a straight no, allow us to guide you through the intricacies of it with some helpful tips that will make sure you create an estate plan, without loopholes and with comprehensive planning.
AFFIRM, WHO WILL MANAGE THE PLAN:
Depending on the nature of the assets, you have to decide who will be accountable for executing the plan, when the need arises. It can be a family member or an attorney or a trustee. It is equally important to choose a power of attorney who will get to decide what would be the course of action if you are physically or mentally incapacitated to take any decision.
USE TAX EFFICIENT PLAN:
There is a strong possibility that the amount your beneficiary will hold could be subjected to income and estate tax, which you can minimize by implementing tax saving policy. Include a charity in the list of beneficiaries and designate them the taxable assets. Leave your non-taxable assets such as retirement accounts, life insurance policies, and after-tax savings to other beneficiaries.
IN CASE OF YOUNG KIDS:
If you are planning to get an estate designed at an early age, try not to avoid probate by acting smart and designating trusts. Create an estate plan and delegate it to whomsoever you think is responsible, your spouse, your parents and make sure to assign a guardian to the children. Not having a will or estate plan will leave the decision of your kids and your property to the state or federal government, who will do what they feel is the best and it might not be what you would have wanted for your children.
ESTABLISH HOW THE MONEY WILL BE SPENT;
If you leave behind kids of small age or those with special needs, which can be your spouse too, it is essential to delegate someone in charge of how the money is to spend on their study or medications. You will have to create a trust for this, the trustee of which would be legally bound to ensure that a certain amount is always there for the assigned expense.
HIRE AN ESTATE PLANNING ATTORNEY:
Estate planning comprises of several components that are necessary to understand and address. An estate planning attorney will lessen all your burden of comprehending how to navigate about the intricacies of estate planning by adequately educating you and guiding you throughout the process. They will make sure you are in your best shape, mentally and emotionally to take a rational decision. They will make sure that you are able to sort and think above the family and financial crisis.
These tips will make sure that everyone is justifiably covered and no one feels left out when the estate plan is executed. So without any further ado, reach out to an estate planning attorney, understand and discuss the component of your estate plan.