ESTATE PLANNING CHECKLISTS PRO

Probate expenses can end up costing up to 10 percent of your estate value, not to mention the time and stress on your family and executor to attend court proceedings. Probate proceedings can be a drawn-out process, sometimes taking a year or two, even if you have a will. Probate is a legal proceeding wherein the court oversees the distribution of assets after a person has died. We can't touch on wills without mentioning probate court.

ESTATE PLANNING CHECKLISTS PRO

Pro Tip: “If you have property in more than one state, you need to have a will in each state that you have tangible property (homes, vacation homes, rental properties),” says Jim Revels, CPA. A list of your debts (mortgage, credit card debt, car loans, etc.).A list of the significant assets you want to leave your heirs.A list of beneficiaries (can be individuals or charities).If necessary, attach a letter to the will to explain why certain decisions were made in the will.” This will help alleviate any confusion or tension about your decisions. Jim Revels, CPA, member of the American Institute of Certified Public Accountants' Personal Financial Planning Executive Committee, recommends that you “explain what your will says to your beneficiaries and why it is drafted that way while you are still alive. That way, everyone is on the same page, and you can address any questions. Once you've established your will, you'll want to sit down with your family and inform them of what to expect in your will. Surprises are fun, but when it comes to being named an executor of a will, it is best to know ahead of time! Many older adults choose their eldest or most responsible adult child. It is important to name someone you trust as the executor. The executor will be the person who makes sure the wishes in your will are carried out. In addition to declaring your wishes regarding your estate, another critical element of a will is naming the executor.

Let's take a deeper dive into each element.Ī will, traditionally called a testamentary will, is a legal document used to transfer the estate to beneficiaries after the death of the person who enacted the will. Addressing these factors in your estate plan allows decisions to be made on your behalf by the right people and ensures your assets are protected and distributed correctly. When it comes to an estate plan, there are four elements you want to address: Your will and trusts, a living will and healthcare power of attorney, a financial power of attorney, and beneficiaries. The Four Important Estate Planning Factors Give you and your loved ones peace of mind.Allow someone to make health care decisions on your behalf if you become incapacitated.No one wants family turmoil! At the end of your life and after your passing, the documents in an estate plan give your loved ones the information they need to make sure the right decisions are made on your behalf, and your assets are smoothly passed down according to your wishes. Sometimes, if there is no estate plan to refer to, it can even cause conflict among family members. Without these important documents, your family may be burdened with many obstacles at the end of your life. 1 Many of us think of wills as the main element of estate planning, but appointing a designated power of attorney, creating a living will, and establishing beneficiaries are all essential parts of your estate plan.Īn estate plan is truly a gift to your loved ones. Though most older adults acknowledge the importance of estate planning, nearly half of Americans over 55 do not have a will. Your estate includes your home, vehicle, bank accounts, businesses, investments, real estate, life insurance, possessions, and any debt you owe. What Makes up an Estate?īelieve it or not, everyone has an estate. Planning ensures that your property and wealth are transferred as you wish, and the right decisions will be made if you are unable to communicate your wishes. Even those of us who have made a modest living should make a plan. Each record in the estate plan has a unique purpose and directive some even appoint a representative to make health and financial decisions on your behalf if you're unable to do so.Ĭontrary to popular belief, estate planning isn't for the well-to-do! Whether you have a little or a lot, we all have one thing in common: We can't take any of it with us when we pass away. What Is Estate Planning, and Who Needs It?Įstate planning is the task of establishing a collection of legal documents that outlines what should happen to your estate upon your death and while you are still alive.

Estate planning checklists