As the owner of a property or real estate asset, you must have heard about estate planning. However, the fundamental concept of estate planning is vague and unclear for most property owners who aren’t quite familiar with the laws and orders related to estate planning. In addition, terms like family estate planning, will estate planning may add a little volume of confusion in your mind. However, estate planning is not as hard as you assume it to be. This article will clarify your knowledge about estate planning and how you should proceed with estate planning.
The Introduction To Estate Planning
In simple verse, estate planning is the way to determine the way in which your properties, belongings, and estate assets will be carried on and occupied by your heir in your absence. Possessing an estate asset, you surely want your asset to be distributed equally among your heirs and the outsiders who are close to you. For that, you’re supposed to draft your estate plan so that your estate planning intent gets carried out after your death, or when you’ll be functionally unable to handle your assets.
To be specific, proper estate planning can be considered estate protection planning as well which means your assets won’t go to the wrong hands in your absence.
What can be considered your assets according to legal norms?
An individual owns assets in multiple forms and all his physical belongings are legally acknowledged as his assets. Now, what does the list of assets comprise? Firstly, lands, estates, houses, and cash are prioritized as assets of an individual. Savings, investments, and retirement accounts come in the next positions respectively in the list of assets. After that, jewelry, cars, clothes, and other materialistic belongings are considered the assets of an individual. The process of estate planning takes all these assets into consideration to make sure that all the belongings of the owner get distributed properly among his beneficiaries.
Who needs to create estate plans?
Belittling the necessity of estate plans is not a worthy decision at all. In fact, everyone needs to craft an estate plan to demonstrate his wishes about utilizing his assets and properties. Middle-aged individuals assume that they have ample time to create estate plans and they can delay the process. Unfortunately, that fact is completely opposite. It’s important to create estate plans as soon as possible because no one has the clue about upcoming accidental incidents and situations.
Similarly, individuals with limited assets and earning sources also tend to avoid creating real estate plans. They assume that their assets are too small to be taken into estate plans. That’s not true as well. No matter how many assets you own, you’re supposed to create your estate plan with an estate law attorney to get your desire documented legally.
Young people are also encouraged to create estate plans regardless of the number of assets they possess. Once you’re 18, you’re eligible to create estate plans and legalize them to determine the future of your assets.
How do you create estate plans?
Well, the majority of property owners tend to avoid estate planning as they assume the process to be quite time-consuming and hectic. Anyway, if you contact the right estate law firm, the process won’t seem hectic to you anymore. The following steps will educate you about how you can create estate plans.
- First of all, it’s important to evaluate your assets properly and track them all. Be it the digital assets of your investments, you are supposed to compile them all to determine how many assets you own.
- Before opting for an estate plan, you need to ensure your family’s future stability in your absence. Make sure that you’ve invested enough in life insurances so that your family can survive decently even after your demise.
- There are multiple estate plans and documentation options available when it comes to estate planning. You’re supposed to determine whether you want to create a will, or trust, or whatever you want.
- Deploy the directives that are necessary to make your estate plan worthwhile. Power of attorney, medical directive, and limited power of attorney are some of the valid options you have in terms of deciding directives related to your estate plan.
- The next and most important part is to name your beneficiaries wisely. This is where you’re free to imply your authority to decide anyone as your beneficiary. However, make sure that you appoint contingent beneficiaries along with the primary beneficiary.
- Thereafter, you would seek assistance from an estate law firm to craft your estate plan and legalize it.
- Lastly, you are supposed to inform your executor about the intent of your will or estate plan to make everything clear.
So, this is all you need to know about estate planning and the process of creating a valid and legal estate plan. So, don’t take the risk of delaying things and create your estate plan as soon as possible.