Estate planning is an important part of financial management and it can get overlooked. You need to take time to create a comprehensive estate plan so that your assets can be distributed according to your wishes.
When it comes to estate planning
You need to make arrangements for how your wealth and assets are managed and distributed. There are many legal and financial considerations involved so that taxes can be minimised. You can look into obtaining services of lawyers for estates and wills so that they can give you a better idea of how your wishes can be effectively carried out. Estate planning can be a complex process and it can be simplified with the assistance from experienced lawyers. The last will and testament is a legal document that will outline how you want your property and assets to be distributed after your death. You can designate beneficiaries in this and specify which assets are distributed. You can also appoint an executor so that they can oversee the probate process. However, you cannot consider it over and done with once you have created a will. It is important to review it from time to time so that the changes in your personal circumstances or your financial situation can be taken into consideration. There may be certain updates to be done.
You can transfer assets to designated beneficiaries using a trust
This is a type of legal arrangement. You will still be able to maintain control over the management and distribution of these assets. You can minimise estate taxes, provide care for minor children or beneficiaries that have special needs using a trust. This is also a good way to protect assets from creditors. There are several types of trusts that you can look into. Some examples are irrevocable trusts, revocable living trusts and testamentary trusts. Some assets will allow you to select designated beneficiaries to receive their proceeds after your death. These are investment accounts, retirement accounts and life insurance policies. Make sure that you review and update the designated beneficiaries so that your overall estate plan reflects your current circumstances. You can grant the authority to an individual to make healthcare or financial decisions on your behalf if you are incapacitated. This is made possible through a legal document called a power of attorney.
You may have certain preferences for your medical treatment
And when it comes to end-of-life care in case you are incapacitated. You can outline your preferences for these in a healthcare directive which is also called a living will or advanced directive. These will guide healthcare providers and your loved ones regarding your wishes on resuscitation, life-sustaining treatments and donating organs. You need to assess your assets and liabilities when you start the estate planning process. You need to have a good understanding of your financial situation so that you can determine how best to structure the estate plan. Your priorities and objectives should be understood so that you can decide how you want your assets to be distributed along with who the fiduciaries and beneficiaries are.
