10 Estate Planning Tips to Help You Prepare for the End

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

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:

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.

View all posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

photo_7123_20080823

We Buy Houses: Don’t Build Without Permits

If you have ever spent any time at the building permit office, then you probably understand how big of a headache it can be. Even if you are just wanting to make a small home update, you probably found yourself questioning, why do I need a permit for that? Why is it so expensive? The permits themselves are very expensive and that doesn't take into consideration the repair cost on top of that. If you have thought about starting major home renovations without having the proper permits, then you should certainly reconsider. If you are starting these home renovations because you are looking to sell your house, then I would recommend selling your home to a cash home buyer instead and saving thousands of dollars and eliminating headaches altogether. If you attempt to sell your property and you have completed repairs without a permit then there could be a lasting impact if a home inspector finds out. If that does become the case and an inspector sees that you have completed non-permitted repairs, then its as if you purchased a home without a salvaged title. Sure you have a home, but because you didn't get the permit, you did more damage than good and could be forced to sell for much lower than market value as this is a huge red flag for buyers. There could also be huge fines associated with unpermitted work. These fines are always much higher than the cost of the actual permit, thus incentivizing people to get permits. Even if you think you won't get caught, the drawbacks and fines just aren’t worth the risk. In fact, if you are in the middle of the construction and an inspector requests to see your permit, you must be able to provide it on hand or they will order you to completely stop construction. At this point, you risk having an open house or the city demanding that all unauthorized work be demolished. If it has come to this point that the cost of the permit is just too much, consider selling your home for cash to a reputable home buying company. Read also: How to Buy a House With No Money in the Bank The last positive of selling your home for cash is that you will have more available funds to complete your next project and you won’t have the fear of doing the work without permits. By completing a cash deal, you can use a large portion of that cash for a down payment on a new home, and still, have money left over to complete and add ons or new construction projects. Starting any type of construction without the proper permits can seem like a sneaky, cost-saving opportunity. The idea of increasing your home value is appealing to everyone, but you have to do it the right way. If you don't want to pay the permits, consider reaching out to a home buying company that will buy your house as-is. Never, under any circumstance let someone tell you that it is ok to build/remodel your home without the proper permits unless of course, they are willing to pay the fines and backlash that may come afterward. Read More: 6 Expert Tips For Finding The Right Home To Buy Buying Or Selling A Home In Seattle? Buying Your First Home In St. Louis Don’t Relocate Until You’ve Answered These Questions About Your New Neighborliness

READ MOREDetails
sell your house

Get rid of middlemen and sell your house for cash

Selling a house is always considered a process that involves middlemen and requires a lot of patience. The middlemen are real estate brokers who advertise and market your property for the purpose of sale. They connect prospective buyers with you to help you sell your house. The brokers receive a commission from the buyer and the seller. They bridge the gap for individuals looking to buy a house and the ones who are looking to sell theirs. Get rid of middlemen and sell your house for cash: Sell your house in the current condition: However, if you are somebody who has no time to wait for the broker to look for a buyer, you need to contact the professional house buying company. The real estate industry across the globe has changed and it is now possible to sell your house within a few days. You can sell your house in whatever condition it is in and you do not need to incur any additional expenses on the same. You will be able to save money in the form of the brokerage and commission that the agent would have charged. Additionally, you do not need to incur any expenditure for the repairs, maintenance or renovation of any part of the property. Receive a no-obligation offer from the professional house buyers: The house selling process is made easier by a local house buying company located in Orlando, FL. Orlando cash house buyers do not ask you any questions and will give you a cash offer after taking a good look at your house. They will not ask you to repaint the house or to renovate the same. They will not ask you the reason for selling your house. Instead, they will buy it in the condition you leave it in and you will receive cash against it. You are under no obligation to accept the offer. If you think that the amount offered by the professionals is lower than your expectations, you can mention the same and reject the offer. If you accept the offer, you will receive an instant cash transfer. Once you decide to sell the house, you need to fill up a form that will inform the buyers about your willingness to sell the property. The form requires details about the property and its location. After the form is submitted, the professionals will visit the property and offer you cash for the same. They have been working in the industry for many years and have successfully managed to buy numerous houses. They are well aware of the prevailing market prices and will not offer anything lower than the current market rate. Wrapping it Up It might become difficult for you to scout the market trying to understand the market rates across different locations. You might not have the time to entertain different buyers who come to take a look at your house. This is why the professional house buying company is in demand and is a preferred option for many. It saves time, money and efforts. Read Also: How To Sell Your House Fast?! Five Must-Know Tips To Move Your Property! 5 Awesome Advantages Of Buying A Smaller House Benefits Of Working With A Realtor When Selling A Property

READ MOREDetails
Estate Planning

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

READ MOREDetails