The only way to ensure that your belongings are properly distributed according to your wishes after death is to leave behind an airtight plan. Estate planning helps remove the uncertainties surrounding the distribution of wealth and attempts to maximize value by reducing taxes and expenses. Ultimately, the format, length, and content of your plan will depend on your specific goals and needs. Estate planning attorneys are available to help you through this process. Large estates generally result in more complicated preparation, but regardless of their size, the following tips will help you ensure that your assets are divided according to your wishes.
You must keep all your documents and information up to date. Your will or trust can be invalidated by a number of major life events, including marriage, divorce, relocation, and the birth of a child. You should also be aware of changes in laws and regulations. Keep your personal and legal information as up-to-date as possible. Your attorney should periodically review your will or trust to ensure that it is legally binding. Despite how clearly you convey your intentions for your belongings, it takes a trained eye to make sure your legal grounds are covered.
Then, check out all the policies and accounts and learn the beneficiaries listed for your IRAs, qualified plans, and life insurance policies. The beneficiary you indicated when opening these accounts may no longer be the person to whom you would like to leave these assets. Changing the beneficiary simply requires some paperwork; however, if you have an attorney, always consult for legal advice before adjusting your plan estate.
You also need to maximize the liquidity of your physical assets and monitor your investment risk. Liquidity refers to the amount of time and effort required to convert your assets into cash. Illiquid assets are substantially more difficult and expensive to sell. Unfortunately, death will bring all sorts of expenses to your family members, including taxes and funeral costs. Be sure to give them quick access to enough cash, even if it’s through liquidation.
Naming a dependent executor is one of the most important aspects of estate planning. Most people choose an executor from qualified estate planning attorneys, while some choose to choose a trusted family member. Your trustee will be in charge of collecting your assets, paying debts and obligations, and distributing your assets according to your wishes. He must select someone who is knowledgeable about probate law and who can be trusted. Based on training and experience, estate planning attorneys are your best choice for the role of executor. You need someone who can work remotely from the situation and who is not emotionally invested in the outcome of the estate distribution.
Be sure to consider the character and personality of each person you want to leave behind. If you are the parent of a minor, keep in mind that the person you choose as guardian of your child does not necessarily have to administer the trust for that child. You can appoint a guardian for your child and put someone else in charge of managing the money. Similarly, if you have a teenager or family member who is notoriously financially irresponsible, you can implement a money management system. Every situation is different, which is why estate planning attorneys are so important.
