4 Things To Focus On When Planning Your Estate
Estate planning can seem like a complicated process when you start to think about all the things that it entails. It can be hard to know what to focus on in order to ensure that your loved ones are provided for. Here are some important things to keep in mind when you are planning your estate.
Choosing Someone to Make Decisions for You
While many people focus on what will happen after they pass away, an accident or an illness can also incapacitate you, and your estate planning should reflect that. You need to ensure that someone you trust will make financial and medical decisions on your behalf. Choosing that person is important so that you can set up a power of attorney form before there is a problem. The terms of that document can be as expansive or as limited as you like.
Including All Beneficiaries
While you may have life insurance policies and other documents that name one beneficiary, you may want to reconsider and add more than one beneficiary. Many people name one person and assume that person will divide the money between all members of the family, but that may not be the case. Whenever possible, make sure that all your beneficiaries are named.
It is also important to remember personal belongings when naming beneficiaries. Your favorite watch and your car may be argued over after you pass away; make a list of all your belongings and be sure to designate a beneficiary for each to avoid arguments and other problems.
Choosing Guardians for Your Children
If you have children who are minors, you need to think about who will care for them in the event that something happens to you and your spouse. Including this as part of your estate plan removes any doubt about where you want your children to go. Don't surprise people with this information; if you're considering a person or a couple, talk to them about it before making it final.
Telling Loved Ones about Your Estate Plan
When you are working on your estate plan, it is best to notify your family and friends that you are doing so. That way, you can address any grievances and disagreements right now and minimize any problems after you pass away. You can also make sure that everyone knows where your official documents are so they can be found when the time comes.
Use the information in this article to help you focus on the things you need to resolve when doing estate planner. You may find it beneficial to discuss your plans with a professional estate planner, such as Jolein A. Harro, P.C., who can help make sure that your desires will be met in the future.