Tips For Creating Your Estate Plan
Death is inevitable, but there are many people that fail to realize it is possible for them to help minimize and manage the problems their passing can cause. This is a particularly important concern for those with children or other dependents that would be unable to support themselves. In order to protect these individuals, you should utilize a comprehensive estate planning approach:
Create A Comprehensive List Of Your Assets And Bank Accounts
One of the first steps that you should be taking with preparing your estate plan is to create an exhaustive list of your assets. This is necessary so that you can easily see the full extent of assets that will need to be divided or otherwise managed. Without this document, it can be easy to overlook assets during this process, and this can lead to inefficiencies or other complications for your survivors as they will have to determine what will happen to these assets. To help you be as thorough as possible, it can be wise to create this list over several weeks as this will help you to be sure that you have everything when you meet with an estate planning professional.
Have A Plan For Minimizing Taxes
Depending on the size of your estate, there is a chance that taxes may be levied on the estate of the inheritance of your survivors. These taxes can be particularly troublesome as individuals will often being financially strained as they adjust to life without their loved one. When you work with an experienced estate planning professional, they will have the expertise needed to help you create a strategy that will allow you to better mitigate these potential tax burdens. For example, there are some life insurance policies that may be used to help offset these burdens or you may be able to stagger the payment of inheritance over several years.
Appreciate The Inconveniences Probate Can Cause
After a person passes away, the will must pass through the probate system so that it can be validated and executed. Unfortunately, probate courts can be very slow as it may take several weeks or longer for the case to be fully processed. For loved ones that are struggling with the financial ramifications of their loved one's passing, these delays can be extremely distressing. While it is possible to structure your estate so that probate is avoided, it will be an extremely complicated process. Having a professional guide you through this process can be extremely beneficial due to helping you avoid problems that could cause your estate to revert to the probate court system.
Contact an estate planning attorney for more information and assistance.