Estate planning, trusts, and wills are not only for the wealthy. Even for the young, they are essential in today’s world. If you don’t have a plan in place, don’t stress. Regardless of age, creating an estate plan is easy.
With the assistance of an estate planning attorney, creating an estate plan is typically straightforward. You can get the forms, resources, and information you require at Legal Nature. Implementing your estate plan right now is quick, simple, and reasonably priced.
What Is an Estate?
An estate is a collection of personal belongings, money, and investments everyone owns, regardless of status. A simple estate plan, including a will, living will, healthcare power of attorney, financial power of attorney, and trust, is essential to protect and distribute the estate after death.
Avoiding estate planning can lead to family disputes or the state taking over. It’s better to be prepared and ensure loved ones are properly taken care of than to die without a will.
Record Your Possessions
You must identify your assets before you can decide how to divide them. Using a notebook, go around your house’s interior and exterior and list your valuable things, such as tools, electronics, jewelry, cars, artwork, antiques, precious metals, and lawn and garden equipment.
List Your Non-Physical Assets
List your non-physical assets (cryptocurrencies, brokerage accounts, life insurance policies, 401(k) and IRA accounts, checking and savings accounts, and anything else found online) after listing your physical assets.
The executor of your estate will find it much simpler to locate non-physical belongings if they have access to this list of accounts.
Identify and List Debts
Making a list of all your open credit cards, vehicle loans, mortgage or HELOC, and any outstanding debt can also make it easier for your executor to ensure your obligations are paid on time following your passing.
Include your account numbers and contact details for the people holding your debts for maximum assistance. Additionally, downloading this report might assist you in finding any debts you may need to remember about or correct any incorrect entries if it has been more than a year since you last received your free yearly credit report.
After completing these lists, print off at least two copies and store them somewhere secure. These lists should be simple to find when needed.
Update Insurance Policies
Suppose you last evaluated your homeowner, renter, vehicle, or other insurance policies a few years ago. In that case, you might need more coverage to keep you completely safe in an emergency. Check your coverage limits and consult a financial advisor to see if you need to carry additional insurance.
Designate “Transfer on Death” Accounts
A “transfer on death” (TOD) classification allows some accounts to pass through without going through the probate process. When a TOD account holder passes away, the designated beneficiary immediately receives ownership of the account. Giving your dependents the option to accept assets without going through probate frequently gives them the much-needed financial support they need during a difficult time.