Estate Planning 101: Here’s some basics you should know

Estate Planning

Smart people understand the need to plan for the future, including a future for your loved ones after you pass away.

Your family needs to be taken care of and have a clear understanding of your desires.

Estate planning provides a way for you to ensure that the people you care are provided for during the difficult time that follows losing a loved one.

If you have not already begun, you should begin planning for your estate now.

6 Essentials Of Estate Planning

Here are six essential basics of estate planning everyone should know to get started.

  1. A will is a good place to start… The very basic “Estate Planning 101” document that everyone needs is a will. A proper will ensures that your wishes are clearly conveyed to the courts (and your friends and family) after your death. While you can type up a will on a whim and get it signed by witnesses without outside help, a good suggestion is to have a will drafted by an experienced estate lawyer. Every state has unique probate laws and special requirements for wills, so do yourself a favor and make sure that your will complies with them. An experienced legal professional can draft a will you can feel confident will hold up in court as valid.
  2. But it’s not all you need to ensure that your loved ones are taken care of. A will is not the only document needed to ensure that your wishes are carefully followed. Advanced Health Care Directives, Power of Attorney, trusts, and other legal instruments work with your will to take care of all the details beyond who gets your estate and will help minimize cost before your death if you become incapacitated.
  3. Probate can be avoided. Probate can be slow and confusing, especially when a person’s estate plan is not set up properly. You can avoid the hassle of probate court with the right estate planning strategy. Trusts and other legal instruments can bypass probate, and investments like life insurance make it possible to leave money directly to a specific beneficiary.
  4. Trusts are not just for the extremely wealthy. When you hear the term “trust,” you probably conjure up images of young, incredibly wealthy heirs. In reality, trusts simply provide you with a legal entity that makes transferring assets easier after your death. Because trusts outlive people, anything held by the trust passes to a secondary set of beneficiaries, which means your family can access what you’ve left behind easier than having to wait on probate. An estate attorney can set up a simple trust for any person who wants to minimize probate and estate taxes.
  5. Estate planning is about more than money. If you don’t think that your assets are enough to merit a careful estate plan, think again. It’s not just about money and property. Estate planning includes making vital provisions for what to do if you become incapacitated through documents like a living will and a power of attorney. Your estate plan also makes custody arrangements for minor or handicapped children and provides financial protections in their names. Neglecting a careful estate plan means neglecting much more than just property.
  6. No estate plan is ever “complete.” You’re never really done with your estate plan. A good estate plan requires regular updates. Every few years and after every major life event, you should meet with your estate lawyer to adjust your estate plan accordingly.

If you keep these basic tips in mind while developing your estate plan, you’ll be in great shape.

Of course, every person is unique which means that no perfect estate plan can possibly follow just these simple guidelines.

Let the experienced estate lawyers at MAJ Law help you create the right custom estate plan for your needs today.

Give Merrill, Arnone & Jones (MAJ Law) a call today to learn how we can help you.

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