Estate Planning might seem like a big deal and a complicated process. But with proper step by step approach, you will get everything done smoothly and easily in no time. Keep reading for tips on how to successfully plan your estate from beginning to end without hitches.
Acknowledge the need for an estate plan and be prepared for it
Nothing can be done properly if the need for doing it is either not known or not deemed important. In your daily lives, before you dedicate your time, strength, effort, finances, etc. to achieve anything, you must first recognize the importance and usefulness of that particular thing. If you engage in estate planning because your business colleague planned their estate or because your attorney advised you to, you might not be dedicated to the process and might not get the best result at the end. You have to recognize the importance of estate planning and decide by yourself that you want to do it. This will make you deliberate about it. Some of the importance of estate planning is
- It can save your family a whole lot of stress and trouble of hiring lawyers concerning your estate if something should happen to you.
- It could also save your estate from going through the probate process while you are gone.
- When you properly plan your estate, at your death your assets will be easily accessible by your family members.
- Estate planning can also help your family reduce or avoid payable taxes on your inheritance. It also give you the opportunity to make all the necessary provisions for your minor
Sort out your estate planning documents
An estate plan comprises of many different legal documents. Most people think an estate plan refer only to a will. A will is just one of the documents involve in an estate plan. Others include Digital asset trust, Letter of intent, Durable power of attorney, Revocable living trust, Beneficiary designations, etc. These documents are very important and should be properly sorted out in other to avoid error of omission as this could be very disastrous.
Plan for incapacitation
Have you ever wondered what would happen to your estate if you were to become incapacitated at any time? Just what I thought! Preparing for incapacitation will be very beneficial to you. Having it at the back of your mind that anything could happen anytime will help you prepare for the unknown. For instance you become incapacitated, the decision making concerning your health, your wealth etc. will have to be done by someone else. If you do not plan ahead of this time and name a person who will fill that gap when the time comes, the state (court) will choose someone to be making these decisions on your behalf. You can plan for incapacity by naming a financial power of attorney and a health care proxy. These persons are referred to as “attorney in fact” or “agent”
Financial power of attorney: The person you name as your financial power of attorney will be in charge of your financial dealings, for instance he can make investments on your behalf. This person should be someone who is good with finance. You should name someone you trust to handle your finance properly; this person could be your spouse, a relative, a friend, etc.
Health care proxy: Your health care proxy serves the same function as the financial power of attorney just that in this case, he is in charge of making decisions regarding your health. For instance there are certain types of medical treatment you wouldn’t want to be given; he will be the one to ensure you don’t get them. The person you name will have to be familiar with your medical desires in order for them to know the types of treatment you shouldn’t be given.
Avoid probate and minimize tax
In planning your estate, you have to be conscious to make plans that will help you avoid probate on your estate and also minimize the tax that your heirs will have to pay on your estate when you die. You can decide to set up a trust as this will immediately transfer your estate to your heir when you die without going through the probate process.
The role of an attorney cannot be ruled out totally as they will guard you through the whole process to avoid errors. Our attorneys are always available for consult and hire.
