Estate planning is a priority that many adults tend to overlook simply because it isn’t something that is likely to come up in thought very often. Unfortunately, failing to take the time to create one can spell disaster for your family members because they might not be cared for.
If you need to create an estate plan, you should be prepared for the process. There are many steps. You have to go into the process prepared for what’s to come so that you can make the decisions that are in your best interests.
Beneficiaries and assets
You need to take stock of whom you want to leave things to and what you have to leave. This gives you a good starting point for dividing everything up between your heirs. By writing it all down, you can make sure that you don’t forget anything or anyone. You can then decide how to pass these things along. You will also need an administrator for the will, as well as a trustee for any trusts you establish.
End of life care
Your end of life care is another consideration that must be taken seriously. Think about your medical care and finances. The powers of attorney designation is important. Giving someone the powers of attorney means that you are letting them make decisions for you if you aren’t able to make them for yourself. You can have one person over your health care decisions and another over your financial decisions. The same person can fill both roles.
Taxes and other implications
As you create your estate plan, remember that there are sometimes taxes that have to be considered. If you pass along vast amounts of assets in a will, there might be taxes due on them. These can sometimes be bypassed by using trusts instead. You also have to consider creditor claims if you think that there might be some of these when you pass away. This is another area where trusts may prove beneficial.
It is always best if you look into all the options you have before you settle on one. This gives you a chance to evaluate the pros and cons of various choices so you can decide which is best for your loved ones.