Reducing worry, protecting loved ones, being prepared in case of our own incapacity…All of these are good reasons to make an estate plan when life is going well. Still, however, most of us procrastinate. Here are some motivators to boost you on your way, plus tips for getting an estate plan started.
Focus On The Benefits
How good will it feel to have a plan in place that both attends to your own potential needs in the event of a decline, and allocates remaining assets for those you love? Very reassuring, right? So get motivated to get it done by focusing on the many benefits of estate planning, including these, as suggested by attorney, Diana O’Rourke:
- Protect Your Loved Ones: Ensure your family is financially secure. Specify how your assets are allocated and appoint guardians for your children.
- Reduce Emotional Stress: Provide clear instructions to alleviate your family’s burden during a time of grief. They won’t have to guess your intentions.
- Avoid Probate Complications: Create a comprehensive estate plan to help your estate avoid the lengthy probate process. Your heirs receive their inheritance faster with fewer legal fees.
- Minimize Tax Liabilities: Use strategic planning to reduce estate taxes if necessary. Preserve more of your wealth for your beneficiaries.
- Control Your Legacy: Support causes you care about by including charitable donations. Let your legacy reflect your values.
- Prepare for Incapacity: Estate planning isn’t only about death. Set up powers of attorney and healthcare directives in case you’re unable to make decisions.
Once you commit to making an estate plan, keep the momentum going by taking practical steps. For example, O’Rourke suggests a great way to start an estate plan is: “Compile a detailed list of your assets and debts. Include bank accounts, retirement funds, real estate, life insurance policies, and liabilities.” Whether your assets are modest or many, professional estate planners, like attorneys or financial advisors, can help you allocate them based on your needs and goals, using the appropriate legal tools, like a will and or trust, as well as healthcare and financial powers of attorney. As you complete your estate plan keep in mind that best practice is to:
- Communicate with Loved Ones: Discuss your plans with family members and individuals you intend to assign roles to. Open communication prevents future misunderstandings.
- Organize Important Documents: Keep your estate planning documents in a safe, accessible place. Inform trusted individuals about their location.
- Review and Update Your Plan: Life changes, and your estate plan should reflect that. Update it after marriages, divorces, births, or significant financial shifts.
Don’t Forget Your Own Care Plan
While estate planning tends to be associated with gifting assets, longer lives make it critical to plan for our own care needs as we age and potentially decline. Who is prepared to make financial and healthcare decisions on our behalf as needed? How can we best protect and designate assets for our own ultimate care? Solid estate planning attends to all these important questions and more:
An estate plan should have beneficiary designations, a letter of intent, guardianship designations, health care power of attorney documents, a durable power of attorney appointment and other legal documents included as well.An estate plan is about more than just passing on your assets, because it has the potential to protect you during life or when you’re incapacitated. It lets you discuss your wishes and make sure that they’ll always be carried out when possible. Estate plans may also help you distribute life insurance, to provide for a pet through a pet trust or to make sure assets pass on without having to go through costly, time-intensive probate.
The designation of a loved one, friend or professional who is prepared to serve in a fiduciary capacity in carrying out our goals is another critical step in estate planning. Depending on circumstances and region, a fiduciary may be specifically referred to as an executor, personal representative or trustee. Regardless of the details of an estate plan, the appointed fiduciaries have a legal responsibility to carry out our affairs, in accordance with our intentions and the law. When representatives are designated, fiduciary bonds, alternatively referred to as estate bonds, may be required, and fiduciaries will find this estate bond information very helpful. At Colonial Surety Company, a leading national provider of all types of fiduciary bonds, the steps to obtaining estate bonds are easy: get a quote online, fill out the information, and enter a payment method. Print or e-file the bond from anywhere—even the law office.
Estate Law Practice?
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