The Basics of Creating Your Estate Plan
Estate planning is a process that involves deciding the distribution of your assets if you become incapacitated or die and for this, you will need to hire an experienced and qualified estate planning attorney. It is a responsible step that you need to follow for providing for your loved ones and you need to understand the basics of estate planning that will help you get the desired outcome.
It should also meet your financial goals and for this, you need a plan for addressing the personal, legal and financial issues that might arise after your death. According to Peck Ritchey, LLC, you shouldn’t leave your family future to chance, but you should also be careful while creating an estate plan that will offer benefits to your family members.
Steps of creating an estate plan that you need to know
• Sign a will– Will is the most important step of estate planning and for this, you will need to choose the heirs who will inherit your properties and assets after your death. If you don’t prepare a will, then your assets will be distributed to your survivors according to the laws of intestacy of the state.
• Select an executor– After preparing the will; you will need to select an executor who will be responsible for paying all your debts and distributing the remaining assets among your survivors who are named in the will.
• Create a trust– If you have minor children, then you will need to create a trust for them and name a trustee who will manage your assets that you will leave for your children. You can either select a friend, relative or any professionals like a lawyer or banker who will oversee the property in your absence.
• Select a guardianship for children– If you are concerned about the well being of your children after you are gone, you will need to select a guardian so that your last wishes will be respected. The guardian will protect and take care of your children until they become legal adults so that you will get complete peace of mind.
• Develop a contingency plan– Estate plan allows your survivors to know the asset distribution they need to follow after your demise. This is especially important so that they don’t have to go through the hassles of legal proceedings and court cases. It also includes a strategy for offering you income in case you become disabled and it will cover potential expenses for care that you will need during a certain phase of your life.
• Prepare important documents– Documents preparation is the toughest task of estate planning and for this, you will need to hire an estate planning attorney. You will get assistance and guidance for drafting of these documents that are needed in the event of your death. The most common estate planning documents that you will need include:
1. living will
2. durable power of attorney
3. childcare guardianship and trust
4. executor forms
5. property papers
6. insurance policies
7. documents of all assets and liabilities
8. final arrangements
The success of estate planning will depend on the right selection of an attorney who will be present throughout the case so that you will get the desired results. Considering the costs for developing estate planning is also important so that you will follow the right steps with the help of a legal expert.