Death is a sensitive subject to discuss. However, it is a necessary topic to talk about since it is in our predictable future. When you die, you will leave people behind. You will also be leaving some assets behind. That is why you need estate planning. Here are some things you should know about estate planning:
Why you should plan
There are a number of reasons why you should be planning your estate. First, let us discuss several possibilities and consequences in the event that you don’t have an estate plan. There are three main consequences of not having an estate plan.
The first is the cost. The unnecessary fees of the probate process can be humungous. You might have to pay a big sum of money, and the court may take some percentage of the value of your estate. The second is the delay. The probate process can take a long time and may take longer than a year’s time. The third is the loss of your privacy. It is possible that anyone, including family members, creditors, and organizations, is able to access all your private information that is from the court during the long probate process.
These consequences are the reasons why you should plan your estate. Other than that, you should do it to secure your estate, set your family’s future without you, ease future complications, and get your plans in order. It allows you to ensure that your wishes are made clear and your desires are met in the event of your passing. It also helps you be in charge of who receives and owns your property.
What to plan
When you are doing your estate planning, there are several things that you need to prepare in the event of your death or your passing. You will need to plan wills, trusts, as well as powers of attorney.
You should first take inventory of your assets and start selecting the people you want to be in charge of several things, like of inheriting your assets, medical decisions, handling your financial affairs, and so on. Then you should draft a will, name an executor, assign power of attorney, make a living will, and decide if you need a trust. You should also discuss these things with your heirs such as your family and friends who will receive the inheritance.
How to plan
Since estate planning is a tricky business that most of the times are legally binding, you should hire an attorney. It is best to do so because they understand estate planning law and they are more experienced in these things. They can also make your planning process easier since they know the ins and outs of it all.