11 Simple Steps to An Estate Plan

Getting your estate in order might sound dreadful, but it does not have to be. Follow the below steps to begin creating your estate plan.

A reasonable estate plan is one of the most ideal things you can have for yourself and your loved ones.

Having the confidence that your invaluable assets and prized belongings are going to go to the people you select can offer you enormous contentment now—and you can’t undervalue what a gift you are going to be giving later to family and friends who are not going to have to make tough, demanding decisions throughout a difficult time of grieving.

Creating an estate doesn’t have to be complex, particularly if you follow the eleven-step estate planning checklist below to arrange your estate planning documentation.

Create a last will

The fundamentals of Estate planning begin with the importance of a last will and testament. You will pass away intestate lacking a last will, meaning the government is going to distribute your assets in accordance with your state’s law, which might not be the way you would have liked the process.

Then, your initial step is to create a last will; to accomplish that, you need to think about each of your assets, financial concerns, and the people you would wish to get them (beneficiaries).

Make sure minor children are care for

When you have minor or dependent children, you can use your will to appoint a guardian for them should you pass away and the passing away of the children’s other parent.

Remember your minor or dependent children are also going to need somebody to oversee property or other inherited assets, so make sure to appoint someone to oversee your children’s financial affairs also. This individual can be the same person as the physical guardian, but it doesn’t have to be.

Make a living will

Oftentimes referred to as an advance directive, a living will is legal documentation that gives instructions concerning the medical care you want to receive if you become incapacitated or gravely ill and cannot convey your preferences. You can include instructions concerning using life-preserving measures like feeding and breathing tubes in your will.

Make a power of attorney

A POA gives the person you’ve selected the authority to make decisions should you be unable to. You should have a power of attorney for health care and a durable power of attorney to manage your financial affairs. Once more, these can be the same individual, although they don’t have to be, and your POA doesn’t have to be an attorney (in spite of the legal name for this type of document).

Consider a living trust

Dissimilar to your living will, in which focuses on your wishes should you be ill or debilitated, a living trust is written legal documentation in which your assets are put in a trust for your benefit throughout your lifetime and then transferred to named beneficiaries at your passing by your selected representative, known as a “successor trustee.”

One of the primary benefits of living trusts is that property included within them doesn’t have to undergo probate court, instead going straight to beneficiaries. This could mean savings of both money and time for your loved ones.

Think about a life insurance policy

The parents of minor children and home owners should think about having life insurance policies.

You may also want to think about acquiring life insurance if you expect your estate to have to pay-out estate taxes or a large debt. This would help guarantee that your heirs are still going to receive the property you wish them to have without having to use a portion of that to pay off your liabilities.

Guarantee your beneficiary names are correct and up-to-date

Guarantee that all the beneficiaries you appoint in your will, trust, or life insurance policy are correct and up-to-date.

Furthermore, by designating a beneficiary on your financial institution accounts, retirement account or savings accounts, those funds can systematically be paid following your passing to your beneficiary designations rather than undergoing the probate process, saving time and money for your beneficiary designations.

Guarantee you’ve addressed estate tax responsibilities

Even though you have most likely heard dreadful accounts concerning inheritance and estate taxes, the truth is that the better part of estates is not going to owe any federal estate tax. This is only since those estates valued over five point forty-three million dollars (as of 2015) are subject to federal estate taxes.

Nevertheless, when you are close to this number, you should guarantee your bases are covered. Think about meeting with an estate attorney, tax advisor, or investment advisor should you require legal or tax counsel for your estate plan.

Furthermore, be sure to find out if your state has any death and inheritance taxes that might also impact your estate; many states have a lower threshold sum than federal estate taxes.

Get your digital assets in order

A lot of us have online accounts, including e-mails, Facebook, bank, and Amazon. Whereas you might not care what happens to some of them following your demise, situations change. It’s still wise to sit down, list them all with logins and passwords, and give somebody you trust the authority to access those assets following your passing and act in accordance with your instructions.

Think about leaving instructions concerning your remains

One of the more considerable costs when someone passes away is their funeral, and one way to keep expenses down for your loved ones is to arrange for yours in advance. You can set up a payable-on-death financial institution account for this purpose or pay in advance for your funeral. Don’t forget to include your preference for the disposition of the body, by cremation or by burial.

Another thing you might want to address in your end-of-life documentation is body and organ donation.

Keep your estate plan documents in a safe place

Finally, you’ve gone through all the arduous work of getting your estate planning documentation in order guarantee they are in a safe place and that your will’s executor and/or your POA knows where to locate them.

This short estate planning guide is going to help you prepare the documentation you should have to safeguard your family—and don’t forget, the sooner you start the process, the better.

Source:

1. Michelle Kaminsky, Esq. (2023b, May 24). 11 simple steps to an estate plan. LegalZoom. https://www.legalzoom.com/articles/11-simple-steps-to-an-estate-plan

Arizona Family Law

Naming guardians in your will can be part of your estate plan. You may think you’re too young or don’t have enough money to justify the expense, but if you have children, you have priceless assets. There are many considerations when naming guardians for your kids. However, the process doesn’t have to be expensive or complicated.

There’s nothing better than the peace of mind you will have knowing you’ve protected your family at a time when they need it most. Let us help. Schedule a consultation or contact Ogborne Law, PLC of Arizona today.