The estate planning process refers to the procedures through which an individual or family arranges the transfer, management or disposal of an individual's property in the event of future incapacity or death. Unlike what some might believe, the process isn't exclusive to the extra wealthy, who own a considerable amount of property and goods, often amounting to large sums of money, and who must naturally leave them to their beneficiaries.
Anyone should consider estate planning because everyone owns property. The assets that typically make up this category include houses or apartments, life insurance, cars and other vehicles, investment portfolios that can consist of stocks, bonds or real estate, as well as different pensions. When you're ready to commence this process, you can talk to a Worcester Estate Lawyer. Getting a professional to handle the proceedings ensures that, regardless of how complex your trust issue or estate is, you'll be able to have a positive outcome.
The advantages
Estate planning has many advantages, mainly that you can ensure your wishes are carried out. It also means you have a backup plan in case something unexpected happens. There's also the fact that you manage to protect all of your assets and safeguard your wealth. Billionaires aren't the only ones who need to do this, and most people want to know that their hard work over many years won't simply vanish.
It is also the best way to minimize or even altogether avoid family disputes, which can often arise when it comes to an estate. These conflicts can often escalate and become profound enough that familial ties can be severed. If you have a business, you most likely want to ensure its success as well by guaranteeing someone else can take on.
The basic steps
Regarding estate planning, taking things gradually and giving the process adequate time and attention is essential. Ideally, you shouldn't rush anything. Some of the most critical aspects you should take into consideration include:
Explicit instruction for the management of all financial affairs
Ensuring the transfer of all of your goods
Designating a guardian for children's inheritance and care
Providing for family members that might have disabilities and special needs
Ensure that those that might be irresponsible with money get protection from creditors
The tasks
Writing a will is one of the fundamental aspects of estate planning, but there's more to it than that. There are several other tasks to remember, including setting up trust accounts in the beneficiaries' names to limit estate taxes and naming an executor to oversee the terms. Financial plans, including 401(k)s, IRAs or life insurance, must come with upgraded beneficiaries lists. You can also establish annual gifting to non-profit organizations and charities.
You must also make a comprehensive list of all of your debts. It should include loans, as well as everything else you owe. If there are multiple beneficiaries you need to keep in mind, you should make lists, as well as copies of each, to keep track of the processes. Reviewing all the documents every couple of years is a must, too, to ensure nothing has changed and to make the necessary changes.
Estate planning is a continuous process; if you want to see it through, you must be prepared to give it your full attention.
