Nearly everyone has important assets they would like to pass down to their loved ones. However, if you do not properly plan your will, your valuable assets could be incorrectly distributed and cost months and thousands of dollars to correctly sort out.
Fortunately, you can take time now to properly plan your estate prior to passing and set up your heirs as you intended. But what does one need to effectively plan their estate? We lay out four items you should have to ensure your estate is in good, trusting hands.
1. An Estate Surety Bond
The first thing you need is an Estate Surety Bond. This bond is known by many names, like Executor Bond, Probate Bond, and Fiduciary Bond, and is required by the court to safeguard the interests of the estate. This bond will ensure your beneficiaries will be compensated if the executor “errs” in the course of settling your estate. Estate Surety Bond requirements can fluctuate based on the state or county the deceased lived.
2. An Up-to-Date Will or Trust
The second item you’ll need to create is a Will or a Trust. Wills are actually much easier to set up than Trusts, but require your assets to be passed through probate so your assets can be distributed as you intended.
Trusts, on the other hand, can be more expensive to create and require professional assistance. When crafting your Trust, you also need a Trustee Surety Bond. This bond will ensure the trustee, or the person who has taken over your assets and property, will act in accordance with your trust. If they fail to do so, your beneficiaries can make a claim against them.
3. Durable Power of Attorney
Durable power of attorney is your upper hand when planning your estate. Power of attorney delivers up-to-date information on who should tend to your affairs should you become incapacitated. However, it’s important to note once you pass on, the power of attorney will take action on your behalf.
4. Updated Beneficiary Designation Forms
Beneficiary forms for life insurance policies, 401(k)s, and other assets generally override your will. Hence, updating these vital forms is necessary to make sure that your assets pass on to who you intended.
Purchase Your Estate Surety Bonds Today
Colonial Surety allows you to get a quote and print out your estate surety bond instantly! Rated “A” Excellent by AM Best Company, we work hard to deliver innovative products to our customers with a superior way to purchase. Visit our website to get a quote today.