Taking care of estate planning can give people confidence that their estate will be handled according to their wishes. Mountz & Kreiser Law Office in Columbia has offered tips for making these arrangements.
Estate planning involves determining how one's assets will be preserved, managed, and distributed after one's death. It also plans for the management of one's properties and financial obligations in the event that the person becomes incapacitated. Reasons for estate planning include preserving family wealth, providing for a surviving spouse and children, and leaving a legacy behind to a charitable cause.
The most basic step of estate planning is writing a will. Leaving family and friends without a clearly written will in place can result in litigation or family conflict.
When writing a will, people should work with a local professional. Establishing estate plans with the help of an attorney experienced in estate law will enable people to understand the state laws and probate process and help them determine the best way to ensure their wishes are documented accurately. Anyone who has an older will should talk to an attorney to make sure it is legitimate and notarized, as well as to make any necessary changes.
People should appoint an executor, who is the legal representative that will be approved by the court and responsible for executing the will. The estate attorney will assist the executor through this process.
It can be helpful to write an informal letter to the executor giving the location of important documents, such as one's original will, asset statements, and debts, and contact information for one's attorney, financial planner, and funeral director.
Those making estate plans should appoint a guardian for their minor children. Appointing a guardian in the will ensures that the children are taken care of per the parents' wishes.
Those making wills should also consider whether to include bequests to charities. These organizations include a church, a library, an alma mater, or another local cause that one values.
Other estate planning documents to consider having are a power of attorney and a living will. If one becomes incapacitated, he or she will need someone trustworthy to handle his or her affairs, such as paying bills, until the incapacitated person is again able to do so themself. A living will informs one's family and doctors of one's wishes regarding health care. No matter what one's age, these documents are important.
In addition, people should consider adding or updating beneficiaries on plans such as life insurance, IRAs, and 401(k)s, which can be done through one's financial planner or employer. These professionals can help to set up beneficiaries and contingent beneficiaries on retirement accounts and life insurance. People can also set up funeral arrangements with their funeral director to spare their family the stress of making these decisions.
As people's lives change, their estate planning may need to change also. People are advised to review their documents every few years or after a life event such as a marriage, the birth of a child or grandchild, a move to another state, the receipt of an inheritance, or an illness or disability of a spouse. Then they can decide if they need to contact their attorney or financial planner to make any adjustments.
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