10 Estate Planning Tips to Help You Prepare for the End

Published on: 15 August 2018 Last Updated on: 23 July 2021

Death.

It’s not the easiest thing to talk about, but it’s important. Especially when it comes to deciding what happens to your assets. After all, you spent all your life working hard to build your estate.

On average, only 44% of Americans have their estate settled. Are you one of them?

If not, don’t fret. Read on to discover 10 estate planning tips, so that you’re prepared for when the time comes.

1. Assess Your Estate:

Before you begin legal processions, it is worth your while to take an inventory of your estate.

Start by evaluating your possessions. Tangible objects, like heirlooms, are easy to make note of and won’t be as complex to distribute to a beneficiary. But not every asset is tangible.

Take care to note intangible possessions, such as investments, retirement contributions, or life insurance.

Speaking of life insurance…

2. Get a Life Insurance Policy:

A life insurance policy is a great investment to make, especially if you have a family. In the event of an untimely death, life insurance can replace income for whoever relies on you for financial support. And, investing in life insurance sooner can lower your cost.

If you are looking for a way to add to your estate, life insurance is a safe bet.

3. Find the Right Lawyer to Give You Personalized Estate Planning Tips:

In order to ensure your estate will be properly managed and distributed, you need a reputable estate planning attorney.

An estate planning attorney will draft the documents needed in order to plan your estate, such as wills, and trusts. It’s important to have an attorney on hand because they can provide counsel that you will not be able to find anywhere online.

The attorneys at De Bruin Law Firm note how computer-generated forms and other DIY solutions won’t cut it. Online forms may not be tailored to the local law in your area, and mistakes could actually cost you in the long run. An estate planning attorney will better understand the subtleties involved when it comes to the law and planning your estate.

4. Choose Your Beneficiaries:

Certain types of assets aren’t passed through wills, such as life insurance or retirements accounts. Instead, they’re passed down by a beneficiary designation. Be sure to keep this information up-to-date, or the wrong person may receive the inheritance.

5. Determine Your Executor:

An executor is someone who manages the plans for your estate. This could be anyone from a family member to an attorney. One factor to determine your choice of executor is the nature of your assets.

For smaller estates, a family member could do. For more complex estates, consider an attorney or a corporate trustee.

In any case, the executor should be someone you trust to carry out your wishes.

According to leading legal experts at Faulkner Law, the executioner of the will plays a critical role in ensuring everything is carried out in accordance with the wishes of the individual. You need to choose an executioner that works in an affordable fee range.

6. Plan Your Taxes:

There’s a saying that goes like this: “There are only two certainties in life. Death, and taxes.” In the case of estate taxes, they happen at the same time.

To reduce estate tax liability, transfer assets gradually. This could mean breaking your assets into shares instead of one lump sum, then dispersing them in chunks yearly. By the end of the time frame you allotted for the disbursement, sole ownership will be granted to the designated beneficiary.

7. Write a Will:

A will is a document that determines where your assets will be distributed only after you die.

Wills must go through probate in order for the assets to be distributed to beneficiaries, which can be costly. They’re also subject to public records.

8. Construct a Trust:

A trust is similar to a will in that it is a document that denotes where assets are to be distributed.

The difference, though, is that trusts are effective immediately, and can bypass the probate step.

Trusts also allow you the ability to disburse assets slowly over time, instead of all at once.

Trusts are more flexible than wills when it comes to estate planning, but that doesn’t mean it’s always the best choice. It’s best to discuss your options with your attorney to determine how your assets are to be distributed.

9. Designate Your Power of Attorney:

A power of attorney is someone that manages your affairs in your stead. This is helpful if you are unavailable for signing legal documents because it reduces disruptions in your own life. It’s also beneficial to have a power of attorney because they can manage your estate if you are medically incapacitated.

Because the power of attorney is someone that acts on your own behalf, you should choose someone that you trust.

10. Review Your Estate Plan:

After your documents have been drafted, you might be satisfied with the way your estate will be handled.

For now, that is.

There are many unforeseen circumstances when it comes to life, let alone estate planning. It’s important to keep your paperwork updated in the event of changes so that the correct people inherit what they’re supposed to.

Some things to look out for are our name changes, changes in power of attorney, or if any alternative guardians to minors should be designated. Check-in with your lawyer as instances occur to make the proper updates.

Now What?

Now that you’re aware of a few estate planning tips, you can rest easy knowing that all of your hard work will fall into the right hands: the hands that you chose.

If you’re wanting to increase your estate in the long run, check out these tips that will change your finances for the better.

Read Also:

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Buy to Let Mortgage Explained

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5 Mistakes To Avoid In Estate Planning

Estate planning is a vital process of wealth management that ensures your assets are distributed according to your wishes after your passing. It is a process that involves careful consideration, documentation, and, often, professional guidance. While everyone’s estate planning needs are unique, there are common mistakes that can derail even the most well-intentioned efforts. To ensure you have a seamless process, our wealth management advisors at Whittier Trust have compiled a list of five common mistakes to avoid in estate planning. Why Real Estate Planning Is Important? Gone are the days when real estate planning was just a source of high net worth. Nowadays, everyone from a middle-class family to a luxurious background must come with efficient estate planning. It is true that there are various sources to invest your money. But the importance of property planning is truly unparalleled. Estate strategizing is all about keeping your loved ones protected, at least from the IRS. Under the Internal Revenue Service, it is integral to transfer your assets to heirs with the aim of creating the least possible tax burden on them. The right estate plan also saves families from falling apart. Just like a will, estate planning helps you choose your assets and finances in the right way possible. Finally, it can be said that estate planning safeguards beneficiaries. If you are the sole breadwinner of the family, there is nothing to worry about, even if something happens to you. But for that, you will first have to curate a properly structured and evenly distributed estate plan. What 5 Mistakes Must Be Avoided In Estate Planning? It is good that you have come up with an exclusive strategy. But is that all to make things work? After all, you are risking your entire life’s savings in this endeavor. So, here I am listing down 5 mistakes that one must be devoid of at the time of estate planning: 1. Procrastination: One of the most common estate planning mistakes is simply procrastinating. It is easy to put off creating a comprehensive estate plan, especially when you are focused on the present. Life can bring unexpected twists, and a thoughtfully crafted estate plan can offer you and your loved ones a comforting sense of security. It is never too early to start estate planning, so regardless of age, taking action now ensures that your assets are protected, and your intentions are clear. A well-structured estate plan can alleviate the cloud of uncertainty about the future of your assets and the well-being of your loved ones. 2. Neglecting Regular Updates: Estate planning is not a one-and-done process. Life is constantly changing, and your estate plan should reflect those changes. Failing to update your plan can lead to unintended consequences. Major life events such as marriage, divorce, the birth of children, the acquisition of new assets, or changes in financial circumstances all warrant a review and, if necessary, an update to your estate plan. Without consistent evaluation, your assets may not be distributed as you intended. You update things like your phone, car, and closet without hesitation. Why neglect something as valuable to you and your family as your estate? 3. Inadequate Consideration of Taxes: Failing to incorporate tax sensitivity into all areas of your wealth management strategy will inevitably diminish the impact of your estate and the eventual assets available for your intended beneficiaries. Consulting with a knowledgeable wealth management advisor can help you navigate the complexities of tax planning and ensure that your estate is as tax-efficient as possible. It’s also important to consider what state you’re establishing trust in. For example, Nevada is one of the most trust-friendly states. It offers strong tax benefits, asset protection, trust longevity, and flexible decanting provisions. 4. Overlooking Beneficiary Designations: Many assets, such as retirement accounts, life insurance policies, and bank accounts, allow you to designate beneficiaries. These designations supersede instructions in your trust. It is crucial to review and update these beneficiary designations regularly to ensure they align with your current intentions. Failing to do so can lead to unintended consequences, such as assets going to a former spouse or someone you no longer wish to benefit. Oftentimes, emotions get roped into our decision-making processes, leading to impulse decisions or skewed perceptions. It is also important to think about the long-term effects of your beneficiary designations, considering every possible scenario. Having a third party like a wealth management firm help you with this process can prove to be extremely advantageous. The third-party can either serve as your trustee or help advise the trustee to make objective decisions and look after the estate and family. In either scenario, a wealth management company helps create a neutral, mutually beneficial relationship in the estate planning process. 5. DIY Estate Planning: Assembling a personalized wealth management team by handpicking lawyers, investment professionals, and other specialists may appear to offer a tailored approach to estate management. However, the effectiveness and cost-efficiency of this DIY approach are often outweighed by the advantages of partnering with a multifamily office. While individual experts bring their own strengths, a multifamily office excels in curating a team personalized to your needs and capable of seamless collaboration, ensuring that your financial objectives are pursued with synergy and precision. Multifamily offices are usually more cost-effective and time-saving as well, even providing family office services to help stay on top of the day-to-day expenses, documentation, and management for an estate. However, a good wealth management firm is also capable of working with outside experts, whether to account for a non-traditional area of need or comfort with a longtime and trusted source of counsel to prioritize your peace of mind. Conclusion Estate planning is a critical process that should not be overlooked or delayed. Avoiding common mistakes can help you create a robust estate plan that protects your assets and provides for your loved ones as you intend. Trust services, like those provided at Whittier Trust, are committed to assisting individuals and families in developing comprehensive estate plans tailored to their specific needs and goals. You are not in this alone. The right wealth management advisors are ready to help you create and maintain an estate plan that is designed just for you. Read Also: How Many Jobs Are Available In Real Estate Investment Trusts? Using Direct Mail To Build Trust With Real Estate Prospects How To Invest In Real Estate Business Dubai

10 Estate Planning Tips to Help You Prepare for the End

1. Assess Your Estate:

2. Get a Life Insurance Policy:

3. Find the Right Lawyer to Give You Personalized Estate Planning Tips:

4. Choose Your Beneficiaries:

5. Determine Your Executor:

6. Plan Your Taxes:

7. Write a Will:

8. Construct a Trust:

9. Designate Your Power of Attorney:

10. Review Your Estate Plan:

Now What?

Pre-Opening Inspections on Residential Buildings

Construction Plans in Australia

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Related

Buy to Let Mortgage Explained

7 Frequently Asked Questions Of First Time Home Owners

5 Mistakes To Avoid In Estate Planning

10 Estate Planning Tips to Help You Prepare for the End

1. Assess Your Estate:

2. Get a Life Insurance Policy:

3. Find the Right Lawyer to Give You Personalized Estate Planning Tips:

4. Choose Your Beneficiaries:

5. Determine Your Executor:

6. Plan Your Taxes:

7. Write a Will:

8. Construct a Trust:

9. Designate Your Power of Attorney:

10. Review Your Estate Plan:

Now What?

Share this Article

Pre-Opening Inspections on Residential Buildings

Construction Plans in Australia

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

Related