Estate Planning can be an unpleasant thought for all of us, but it’s about much more than The Benjamins! By taking the right steps, you can ensure that your wishes can be easily understood and carried out. Here are some items to consider when creating an estate plan:
- Do you have an updated will?
A will provides direction for your estate. It allows you to appoint a legal guardian if you have any children under the age of 18 and can provide other important provisions.
- What about healthcare documents?
Healthcare documents will convey your personal medical wishes if you become unable to make medical decisions on your own. These documents may include a living will and a durable power of attorney for healthcare.
- Procure all necessary financial documents
Just like healthcare documents, financial documents can be structured to allow a person to make financial decisions on your behalf if you are unable to so.
- Review your beneficiary designations
Naming a beneficiary for life insurance and retirement accounts allows these accounts to be payable directly to your beneficiaries through operation of law.
- Do you have the proper life insurance coverage?
Be sure to regularly reassess your life insurance coverage and compare the benefits to your financial obligations.
- Create a letter of instruction.
A letter of instruction is a non-legal document which outlines your wishes. A clearly worded, strong letter of instruction can save your heirs time and expense when they are administering your estate.
- Be sure that your documents can be located.
Your family will need access to the specific documents you have created to manage your estate. These documents may include: Your will, Trust documents, Life insurance policies, Deeds to any real estate, Bank accounts, Retirement accounts, and Safe deposit boxes. Information regarding any debts you have: credit cards, mortgages, loans, and utilities will be helpful as well. In today’s world an electronic vault can be a useful way to organize this information for your family.
As always, seek out professional advice before making decisions to modify any current plans!