When lawyers talk about an estate, they usually refer to your assets that you wish to pass to beneficiaries in a will or trust. These assets can real estate, investments such as shares or managed funds or your own personal property like cars, bank accounts and your household things. Estate planning involves distributing your property to your beneficiaries. The planning can be done by an individual or by the entire family. I visited T.M. Law for estate planning lawyers The main reason why there has to be planning is to make sure the family and any other benefactors get most of the wealth that you have once you die. It is a good idea to involve your beneficiaries to minimize any potential disputes over your assets when you are not around.
One of the common methods through which you can arrange your wealth is by writing a will. When you want to plan your estate, there are some things that you should have in mind. They include:
Have a basic plan for your estate. This is important, even if you have a lot of wealth so that your family is well taken care of when you die. The plan should include how you propose to pay off your debts, how you propose to financially take care of your family and how you can protect their inheritance from unforeseen circumstances.
The planning has many elements. Once you get down to plan your estate, you will have to write a will and assign someone as executor. You can also have a trust in your will that could protect your beneficiaries’ inheritance and save them some tax. You should also decide on a trusted person to be the guardian of any young children you may have, and the age in which your children can inherit your assets.
List down all your assets.The assets that you can include are the insurance policies that you have taken out, retirement savings, investments made some real estate (only if you hold your properties in your own name or as tenants in common) and personal effects. At this point, you should decide who will get the assets once you are gone and who will take care of the financial matters when you are not able to. Appoint someone to make medical decisions for you once you are incapacitated.
Write a will. This is a good way to distribute your wealth and decide who will take care of your children when you die. This is crucial because it prevents any extra costs that your family may incur in trying to figure out who gets what or leave it up to the law to decides who gets your assets.
Talk to your beneficiaries. The distribution of wealth can bring a lot of conflict in a family and discussing your will with them can make it easy. It gives your beneficiaries a chance to express any perceived unfairness to you and gives you an opportunity to deal with their feelings. This alone can save a potential challenge to your will when you pass.