What Should Be The Ultimate Goal Of A Proper Estate Plan?
There are two primary goals a person should have in place for a proper estate plan. First, have a clear direction of where you want your assets to go after your death. Second, identify a person you trust to manage your assets after your death. Often, a family member, such as a spouse, son, daughter, or sibling is chosen to manage the affairs after a passing.
I Don’t Have Many Assets For Beneficiaries To Inherit. Do I Still Need An Estate Plan?
Every estate is unique. It is important to discuss and consult with a knowledgeable estate attorney about your assets and estate plan. Some assets are considered probate in nature, such as real estate or automobiles, and other assets are considered non-probate in nature, such as life insurance, 401ks, IRAs, and bank accounts. Depending upon the nature of the assets, there may not be a need to probate a will. If all of the assets at the time of death are non-probate, probating a will may not be necessary. However, it is wise to consult with an attorney to avoid uncertainty.
When Is The Best Time To Set Up Your Estate Plan? Is It Ever Too Late?
It is never too late to arrange an estate plan. Many estate plans have been drafted and modified within the latter years of a person’s life. A common time to see a family for the first time for estate planning is after the birth of their first child. Parents want to make sure that their children are taken care of in the unlikely event that something happens to them, and they are no longer alive. Any change in life events such as marriage, children, divorce, and/or a significant adjustment in financial condition are reasons that drive individuals or couples toward an estate plan.
Why Do People Delay In Creating An Estate Plan?
There is a prevalent internal belief that we are going to live forever. Talking about death is never an easy subject. People tend to find other priorities in life to avoid dealing with affairs that may happen after they die. People also mistakenly believe that an estate plan is not needed if they do not have significant financial means, or substantial wealth being left behind. Formalizing an estate plan will put your loved ones in a much better place as a result of your investment in a proper plan.
Who Are The Necessary Parties That Would Be Involved In An Estate Plan?
The necessary parties to an estate plan are the individuals initiating the plan and their beneficiaries. All documents such as a will, power of attorney, medical power of attorney, children’s medical power of attorney, medical directive, HIPAA authorization, and declaration of guardianship, are considered when customizing a plan that is important to those involved. The person actualizing an estate plan usually consults their spouse and children for input, and to make them aware of the decisions made. It is common for a husband and wife or couple to create an estate plans at the same time.