The passing of a relative is an emotional time for family members. This period is even more stressful if they have to argue over the estate. Not having an official estate plan in place could create tension between relatives and lead to the wrong people receiving your hard-earned assets. But when should you start creating your estate plan? In this blog, we’ll go over when to develop it and what elements should be considered.
An estate plan is a comprehensive document that clearly states which loved ones will receive your assets after you pass. A properly developed strategy lays out your specific wishes and provides peace of mind that your family and friends are protected when the time comes. Having an estate plan protects your relatives from time-consuming and expensive probate processes.
While it may be tempting to wait until you’re older to start, doing so could create major issues if a sudden tragedy strikes. Creating your plan once you turn 18 and updating it every few years is an excellent strategy.
Creating an estate plan is complicated, especially if it features significant assets. Here are some elements that must be included in the planning section:
The last will and testament should include basic instructions regarding which loved ones receive your assets. This consists of any real estate, personal possessions, bank accounts, and investments. It also details who will look after your children, pets, and other dependents. Having a well-designed will provides peace of mind knowing the people and things that matter most are in good hands.
If you want to distribute your assets quickly and privately while avoiding probate, then consider creating a revocable living trust. This document is especially helpful if you have a large estate or business and want to reduce expenses for your loved ones.
Some items like 401(k) accounts, pensions, and life insurance policies can be immediately transitioned to your loved ones after you die. While creating your estate plan, include the specific people you want to receive these accounts. This prevents arguments between relatives and reduces stress during a trying time.
A proper estate plan should also include directions on what should happen if you’re medically incapacitated. Creating an advanced healthcare directive outlines important decisions about your medicare care, including preferred treatment options and end-of-life care.
Giving someone financial power of attorney provides them the legal authority to make essential decisions about your finances and property. This is especially important if you’re medically unable to manage your estate but need help paying bills and making deposits.
While updating your estate plan, remember to include copies of your insurance policy and financial documents. Giving your loved ones access to pension plans, tax returns, credit card statements, and mortgages lets them quickly get affairs in order.
Make sure your proof of identity documents are in an accessible location. These include your Social Security card, marriage license, and any settlement agreements. Having these in a discrete spot reduces delays for your relatives.
Your estate plan should include any titles and property deeds that belong to you. The beneficiaries of your homes, automobiles, and other real estate properties need these documents to take legal ownership of them.
We live in an increasingly digital age, and most of your financial information exists in a virtual environment. While creating your estate plan, include your usernames and passwords for various investment and banking accounts. This digital vault allows your loved ones to easily assess the size of your nest egg.
Include your preferred funeral arrangements in your estate plan. This eases the burden on your relatives and reduces the stress of planning your memorial service.
Hobart Wealth takes pride in working with clients to develop an estate plan that secures their assets. Contact us today to schedule your free consultation.
Hobart Wealth understands the importance of securing your family’s financial future after you pass. We offer comprehensive legacy planning services to protect your wealth from capital gains taxes and eliminate disputes between your relatives.
Our team believes developing a proper estate plan is vital to ensure your assets go to the right people. We take pride in working with our clients to secure their personal finances by following these steps:
The first step in our estate planning process is understanding the value of your estate. Our experts take time to ask you questions about what goals you have for your assets and who you want to receive them.
The Hobart team understands the importance of proper estate planning. We only work with qualified attorneys to verify your will, and other essential documents are drafted to meet your specific needs. Partnering with us provides peace of mind knowing your assets are protected for the long term.
Making sure the maximum amount of your estate is transferred to your loved ones is a top priority for our team. We carefully manage your assets to protect your family’s long-term security and implement tax strategies that reduce Uncle Sam’s impact on your wealth.
Protecting the long-term security of your loved ones is more than just creating an official estate plan. Hobart Wealth takes pride in helping our clients build and maintain their wealth through our holistic financial planning services. Partnering with us provides peace of mind knowing you’re working with experts that have your best interests at heart.
Contact us today to learn more about our estate planning services.
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