Estate Planning: 9 Things You Need To Do Before Passing Over

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How do you want your assets to be distributed after you’re no more? Many people are unaware of the steps involved in estate planning, but it’s essential to determine how you want your assets to be divided among successors. Doubtlessly, confronting your mortality isn’t comfortable for some people. But you can’t neglect the importance of drafting your will. Otherwise, you won’t control the distribution of assets belonging to you! So, how do you ensure your wealth’s divided among people precisely as you will after your departure? Experts have suggested estate planning as a technique to distribute your assets as per your desires. But there are some important components of estate planning you must know about.

What’s estate planning?

What happens when a person dies and there’s no will? It leads to a condition we term as “intestacy,” and the person’s said to have died intestate. Therefore, you shouldn’t ignore the value of drafting estate planning documents for securing your family’s future. Also, employ the services of estate planning lawyers/attorneys to help you prepare these documents properly.

Your estate planning documents contain several papers, and a will’s just one of these many. So, it’s proper to understand how to create your Last will and what’s the procedure for finalizing this paper. We suggest you start writing your will after understanding its different categories and learn what the document must include. Also, ensure to realize the steps you must take while drafting this document. These steps allow you to create other estate planning documents as well. So, here’s more stuff to do before your death:

• You can establish a power of attorney for allowing someone to deal with financial matters on your behalf in your absence. This person – known as your agent – handles your affairs when you are incapacitated. This document may establish a general power of attorney or a specific one.
• A healthcare directive designates someone to make medical decisions on your behalf. Since your family members may disagree about your health-related problems, nominating a proxy can help someone you trust to make these decisions. The advance-care directive can also state your end-of-life wishes.
• Establishing a trust enables people to have more control over their assets. People prefer a trust because it remains private, doesn’t require probate, and becomes effective before your death. A will – on the other hand – doesn’t become effective as long as you’re alive. It must go through a complex process called probate before it becomes effective. However, we suggest people create both a will and a trust when they are alive.

How do you write down your will?

Surveys have indicated that older people are more prone to creating a will than younger people. We learn that two-thirds of Americans aged 65+ write a will, whereas 79% of millennials (aged 18-34) don’t bother to write down their testaments.

Creating your Last will isn’t difficult, especially when lawyers are present to assist you! So, what are the steps involved in estate planning and will-making? It seems proper to discuss some of these issues here with you so you may establish a Will successfully:

• You should decide which type of will you require for the correct division of your assets. We have several categories of testament available to people. So, it seems helpful to employ the services of an estate planning attorney to help you with this procedure.
• Review your belongings and decide what you wish to include in your will. You can include property, vehicles, family heirlooms, insurance policies, and even retirement accounts into your will. You can also add digital assets, e.g., money-making social media accounts.
• Three important people are connected to your will: your beneficiaries, your executor, and your children’s guardian. You may include or remove someone as a beneficiary, thereby ensuring that only trustworthy individuals become inheritors. The executor carries out your wishes, so you better get a reliable person to play the role.
• If your children aren’t eighteen yet, you should nominate someone as their guardian. A guardian takes care of your children after your death and prevents them from being raised by someone you don’t like. So, we strongly suggest you nominate a guardian for your underage family members. Also, people with pets can assign someone as the owner of these animals.
• Your will doesn’t become official unless two witnesses (who aren’t beneficiaries) sign it. After you’ve signed in your handwriting, your witnesses will also furnish the will with their signatures. That’s how these people can testify that this document was created as per your wishes. Some states require estate planning documents to be notarized as well.
• Finally, you must store these documents somewhere safe where you can always access them. Since we live in this increasingly digital age, you may store them online and keep your online password information in easy access of your executor. Remember to update your documents whenever something changes in your life (e.g., a divorce/breakup). After you’re done, you’re ready to pass over and leave your family members in capable hands.

Conclusion

Estate planning constitutes the surest method of distributing your wealth precisely as per your desire after your death. However, a 2019 survey shows that merely 46% of Americans have created a will describing the division method of their assets. Your will’s the most important estate planning document, and you must hire experienced attorneys to draft other documents that include a living trust, power of attorney, and an advanced-care (medical) directive. Most importantly, choose your beneficiaries.

These documents are legally binding and ensure you don’t die intestate, i.e., without writing a will. Since intestacy will cause your closest relatives to inherit your wealth, itemize your belongings, find someone to become the executor, and appoint a trusted person as your children’s guardian. You should state your testament in clear-cut words. Your will can prevent someone you dislike from becoming the heir to your assets. It’s better to draft both a will and a trust for the benefit of your family members.