Making a will and estate plan is one of the most significant things you need to do for yourself and your loved ones. However, people put it off because they think it’s too complicated or expensive. The truth is, with a little bit of research and some simple planning, you can easily establish a will and estate plan that meets your needs. Veterans, business owners, and anyone else who is rightfully concerned about their assets and legacy should make a solid will. This blog post will provide you with a checklist of the basics of legal estate planning. Follow these tips, and you will be on your way to protecting yourself and your loved ones.
Inventory Your Tangible and Intangible Assets
The first step in creating a will and estate plan is to inventory your assets. This includes your tangible assets, such as your home, car, and bank accounts, and your intangible assets, such as life insurance policies, stocks, bonds, and retirement accounts. You will need to know the value of these assets to determine how they should be distributed in your will. The value of your assets can change over time, so it’s essential to update your inventory regularly.
Pick Your Team Wisely
Once you have the inventory of your assets, it’s time to pick your team. This includes choosing an executor for your will, a guardian for your minor children, and beneficiaries for your assets. It’s essential to select people you trust to handle these responsibilities in the event of your death. It would help if you also appointed a backup executor and guardian in case your first choice is unable or unwilling to serve. Your executor will be responsible for carrying out the instructions in your will. This includes distributing your assets according to your wishes and paying any debts and taxes you may owe.
Assign Transfer on Death Designations
In some cases, you may be able to assign a Transfer on Death designation to specific assets, such as your bank accounts and investment accounts. This allows you to name a beneficiary for these assets, which you will receive upon death. These assets will not go through probate, so they can be distributed quickly and efficiently according to your wishes. Not only does this save your loved ones the hassle of dealing with probate, but it can also save them money on taxes.
Consider a Trust
With a trust, you can specify how and when your assets will be distributed after death. Trusts can be used to provide for minor children, disabled adults, or anyone else you want to protect. Trusts can also be used to minimize taxes and avoid probate. You should speak with an attorney to determine if a trust is right for you.
With no estate plan in place, your family will have to make some difficult decisions when they are already grieving. By taking the time to establish a legal estate plan, you can make sure your wishes are carried out, and your loved ones are taken care of. Use this checklist to create a will and estate plan that meets your needs.
