![]() Knowing what you have is the first step to setting up a trust or will to distribute your assets after death. Therefore, it’s important to keep track of tangible assets (homes, vehicles, collectibles, land) and intangible assets (stocks, mutual funds, retirement accounts, life insurance, bank accounts, ownership in a business). Unexpected items may vastly increase the value of your estate after death and incur a significant tax – such as life insurance pay-outs. Having a clear idea of where what, and how much you can help you figure out what assets may require special attention in an estate plan to avoid problems such as (but not limited to): Certain estate planning checklist tools can help you reduce the size of your probatable estate, so your heirs don’t have to worry about an extensive and costly probate process without requiring every single asset to be accounted for in an alternative arrangement (like a trust). On the other hand, smaller estates can lead to a simple and neat expedited probate process. What will you leave behind when you die? The size and complexity of your estate can affect your plan. A comprehensive estate planning checklist can be summed up in the seven simple steps below. You need only properly define your interests and priorities – and work with someone who knows what they’re doing. It can be used to protect specific assets and properties from creditors and avoid the complications of ancillary probate caused by having assets across state lines. It can be used to ensure that your child’s guardianship in the event of your death is clearly defined. Estate plans serve as both contingencies for families of all ages (from young parents to great-grandparents), as well as powerful tools in matters of:Īn estate plan can be used to ensure that a loved one who struggles to manage their own finances is well taken care of. Why Do I Need an Estate Planning Checklist?Įstate plans are not exclusive to the elderly and early retirees. You don’t need to take full advantage of every legal concept under the sun – you can mix and match directives and documents to create an estate planning checklist that best suits you and your family. ![]() The key feature of any estate plan is flexibility. You may include a legal document ruling out extensive life support in your estate plan, for example, or name a sibling or close friend as your personal representative for financial and business matters should you become legally incapable of managing your own affairs. A comprehensive estate plan will include representatives and directive documents in the event of mental incapacity and near-death. ![]() Estate plans aren’t exclusively used to manage and distribute things – they can be used to manage and distribute decision-making rights, as well. You might request to be buried in your car, for example – but most assets (and properties, especially) need to find a new owner after the previous owner’s passing.Īn estate plan allows you to designate beneficiaries and heirs, plan how your assets should be divided and used, and even provide directives for how your assets should be distributed – i.e., immediately or over the course of months and years. Under most circumstances, we can’t take the things we own to the grave – or at least, we can take very little to the grave. Estate planning is the management of assets for their eventual reallocation after death. ![]()
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