Estate planning is very important in securing your family’s financial stability especially when you are gone. Unfortunately, so many people do not plan their estate, and this takes a toll on their surviving heirs on how they are to divide and distribute personal properties, investments, and benefits. With estate planning, you can leave your loved ones with peace of mind.
When Is the Right Time to Plan Your Estate?
Life changes such marriage, childbirth, or illness often triggers the proverbial question “When should I start planning for my estate?” Estate planning involves the preparation of a Last Will and Testament, Health Care Proxy, Living Will, and Power of Attorney. This is the reason why it is never too early to prepare for your estate plan.
It is important to take note that estate planning should be made and constantly reviewed with every new life event that comes your way–preferably every five years to ensure that everything is covered in case of your untimely death.
The bottom line is, it is never too early to start planning for your estate. In fact, preparing for your estate gives your loved ones an organized process when it comes to distributing your wealth.
How to Create an Effective Estate Plan
Estate planning can be complicated, and it usually requires the service of a professional. Aside from addressing how your wealth or assets will be distributed, estate planning also involves determining the selection of a guardian who will care for your children or administrator of your will. Tax implications are also included thus it is very important to work with the right people. Below are the things that you need to consider when planning your estate:
1. Selection of the guardian: Who do you want to be responsible for you or your children if you get sick or pass away?
2. Assets and liabilities: What are the assets that you want to protect or distribute when you get sick or pass away?
3. Your beneficiaries: Who will receive your assets? While it is common to distribute your assets to your wife and children, some people name their friends or their favorite charity as their beneficiaries.
4. Estate administrator: The estate administrator is the one who will administer your estate and carry out your wish.
Regardless of how old you are, the goal of planning your estate is to make sure that your assets are properly managed in case something bad happens to you. Moreover, it ensures that you pass the maximum amount of your wealth to your surviving loved ones. Once you have finalized your plan, make sure that you review it to address the changes.
Seeking help in preparing and planning for one’s estate is crucial. The thing is, planning for your estate can give rise to many questions and challenges. Thus, seeking guidance is really critical on estate planning. At MKS&H, we have trusting, entrepreneurial, professional, fast-moving and energetic experts to help you with estate planning.