The key to estate planning is in the word plan. More than just a will, an estate plan makes clear your wishes on important matters. Various components of your estate plan should be reviewed and updated every few years to make sure they still reflect your goals of wealth distribution.
Create a Will and a Trust
Most people only create a will naming the heirs to their assets. An estate planning lawyer Hernando County FL will probably also advise you to create a trust in addition to the will to keep the will from having to go through a lengthy probate process.
Make Tough Decisions
The time to make tough decisions is before it’s too late. If you have minor children, consider carefully who to name as guardian in the event you die before they reach adulthood. Make sure you discuss this decision with whomever you name to make sure they are willing and able. Whoever becomes guardian to your children will also handle their inheritance from your estate.
Nobody likes to think about dying young, but an even worse prospect is lengthy incapacitation before the end. Create a living will that includes a health care directive about how your care should be handled if you become unable to speak for yourself.
Finally, name someone you trust to hold your financial power of attorney. This might be an adult child, close friend or an attorney. Even if you live to a ripe old age, there may come a time when you no longer feel able to make financial decisions. A power of attorney authorizes someone else to manage your money while you’re alive.
Distribute Your Money Wisely
There are numerous ways you can help your beneficiaries get the maximum amount of money out of your estate with the least amount of hassle. First purchase life insurance to help cover the extra expenses that often occur after a death. Next, set aside money for the funeral expenses, or better yet, prepay them altogether. Finally, set up beneficiaries for your bank and retirement accounts so that the money is paid directly to specific people upon your death.
Prepare Final Acts of Kindness
Plan your own funeral and leave detailed instructions on music and any religious or other types of readings you would like. Write your own obituary too. Your relatives can tweak it if necessary, but they will most likely appreciate the head start you have given them. Lastly, store all your important documents together in a fireproof box that at least two other people know about.
Fully developed estate planning takes work. It will be very worth it to your loved ones in the end.
