Have you discussed estate planning with your family or attorney? Unfortunately, most people aren’t exactly sure what estate planning actually is. It’s simply a process that’s used to predict and organize how a person’s estate will be disposed off. The process works to minimize unnecessary fees and taxes that can affect those who inherit the estate. The following are a few tips about Estate Planning that everyone should take into account.
First of all, practically everyone should have some sort of established plan for their estate in the event they pass away. Many people overlook the need for estate planning simply because they feel they don’t have enough net worth. You’d be surprised at the type of family squabbles that occur over some of the smallest assets. Estate Planning ensures that there’s no confusion between your family and your intentions after you’re gone.
Most people have the misconception that an estate plan is just like a will, but this isn’t exactly true. However, your will will be included in the overall plan. In addition to your will, your estate plan will decide who acts as your power of attorney, and how medical emergencies will be handled. The process will basically work to cover all of the necessary angles to avoid any mix-ups.
When you’re developing an estate plan everything in your possession must be taken into account. For instance, do you have any investments or own any real estate? These belongings will need to be inventoried into the plan. You’ll also need to include any savings you might have, as well as any insurance policies in your name.
At this point you’ll also have to decide who’s going to inherit your belongings. If you have a spouse, you’ll likely choose them to be the beneficiary. However, if you have children, or any extended family you’d like to include, you can designate certain assets to them as well.
If you’d like more information about this, speak with Woloshen and Herman C.P.A. These professionals can help you decide how your estate will be handled after you die. No matter what you think it’s important that this process is organized before you’re gone. It’ll make things a lot easier for your family.
