When you think of planning for the future, you probably think of things like retirement planning–doing things like saving by sticking to a budget, paying off debt, and achieving financial goals. But shouldn’t your future planning also involve making things easier on the loved ones you leave behind when you die? To do this, you need to work on estate planning.
An estate plan isn’t just for the wealthy—it’s a vital tool for anyone who wants to ensure their assets are distributed according to their wishes, protect loved ones, and reduce potential conflicts. Here are the basics of why everyone should be making an estate plan.
An estate plan allows you to decide how your assets, such as property, savings, and personal belongings, will be distributed after your death. Working with an estate attorney, you can write a will or create trusts to ensure your assets will be distributed according to your instructions, and not leave it to the laws in place in the state where you die, which may not align with your preferences. By creating a will or trust, you can specify who receives what, ensuring your wishes are honored.
When you engage in estate planning, you can provide important assistance for those in your care like minor children or incapacitated adult siblings by naming a legal guardian in your will. By naming a legal guardian, you can ensure those in your care will be cared for by someone you trust to look out for their best interests.
When estate planning you may also work with a financial advisor to engage in financial planning that could include creating trusts or other mechanisms to manage assets for beneficiaries who may be too young or otherwise unable to handle finances responsibly after you die.
The lack of a clear estate plan can lead to disagreements among your beneficiaries, family members and friends. This can cause undue emotional stress and strain for them and can create a bad situation for the person you’ve named as your executor. By clearly outlining your intentions in documents like wills, trusts, powers of attorney, durable healthcare power, and health care directives, you reduce the likelihood of disputes and ensure a smoother experience for your loved ones.
Your executor will have 100+ tasks to complete as part of their executor role. Your executor will need to know things big and small like the fact that you have an investment account or that you have regularly recurring subscriptions. The more you can do to plan your estate, and the more important information you can document for your executor, the easier it will be as they complete the executor duties. Executor.org provides a customized plan for you to follow that will help prompt you with all the things you can do now as you plan your estate to make life easier for the person you name as your executor.