Following these simple estate planning tips will give you peace of mind in case of the unexpected.
No one knows what the future will hold, but these simple estate planning tips will help you prepare for anything. Life is full of unexpected twists and turns, and you may even hit a few bumps along the way. However, there are a few things you can do to protect your family in case something happens to you. Handling the details of your estate now will ensure your loved ones don’t find themselves dealing with debt collectors or the IRS in the future.
Start Writing a Will Today
Too many people assume wills are for seniors or the terminally ill. Instead of putting their final wishes in writing at an early age, a good majority put off this crucial task. And, unfortunately, a lot of families find themselves struggling to make sense of the estate after losing their loved one. Without a will, no one will be able to follow your final wishes.
It’s best to write a will while you are still healthy and coherent. You should let your beneficiaries know of your wishes in advance, and be sure to name an executor to oversee things. If anything changes down the road, you can always modify your will. But having one in place will make dividing your estate goes as smoothly as possible.
Plan for the Unexpected
There are no guarantees in life. Even if you are healthy today, your situation can change in the blink of an eye. A sudden illness or devastating injury could put a lot of stress on you and your family. Instead of leaving things up to chance, you should consider making arrangements now.
Estate planning doesn’t only involve your assets after death, but it also protects your family if you ever become incapacitated. Make sure you assign a power of attorney to the person you want to handle your finances and medical decisions. This often overlooked tip will give your family peace of mind during a difficult time.
Put Your Assets into a Trust
While you hope your loved ones will use their inheritance wisely, that’s not always the case. If you have a large estate, your beneficiaries may feel overwhelmed. This scenario is especially true when leaving an inheritance to minors. You can help manage the distribution of your estate by setting up a trust.
A trust allows you to put specific stipulations on your estate. You can even arrange a payment schedule for your beneficiaries. Having a trust will also ensure your loved ones have financial security when you’re no longer around. Furthermore, you may be able to lessen their estate tax burden. After your death, a trust becomes irrevocable so that no one can contest or change it.
Pay for Your Funeral
Whether you prefer burial or cremation, your final expenses could add up quickly. Funerals are more expensive than people realize. The last thing you want is for your family to go into debt to pay for your memorial service. Instead, it would be best if you planned in advance for these expenses.
Many people set aside provisions to pay for their funeral when planning their estate. You may also consider buying a life insurance policy to cover these expenses. It’s also wise to set aside a portion of your estate to repay any outstanding debts, such as credit cards, car loans, or a mortgage. After all, you don’t want to leave your loved ones with a stack of unpaid bills.
The Estate Planning Experts
Talking about the future isn’t always easy, but planning your estate now will reduce the overall burden on your family. Incompass Tax, Estate & Business Solutions can guide you through each step of the process. We have decades of experience, and our compassionate team will ensure your family understands your final wishes. Connect with us online to begin putting these estate planning tips into action.