Estate taxes can quickly eat away a large chunk of your assets but with a solid estate plan in place, you protect those assets for yourself and your loved ones. In addition to asset protection, an estate plan can be very helpful in the event that you become incapacitated, you pass away while your children are still young, and much more.
These tips can help ensure that your estate plan is adequate enough to provide your family the protection they need.
Update Your Will Regularly If your Will was written prior to a major life event, such as a marriage, a divorce or the birth of a child, there is a chance that it will be considered invalid because it no longer address all your assets and/or heirs. Whenever you experience a major, life-changing event, you will want to update your will to reflect your changing circumstances.
Review Your Beneficiaries Keep some type of record of who the beneficiaries are for your retirement accounts and life insurance policies. When an insurance policy is purchased, a beneficiary is named and the same is true of retirement accounts. If you have more than one, and they were opened some time ago, you might have changed your mind about who the beneficiary is or the beneficiary you named has since passed away. Keep these documents up to date so that the right person is benefiting from them.
Name an Executor and Trustee You will want someone that you can trust to be the executor of your Will and, if you have a trust, to act as trustee. The executor of your Will is responsible for paying any debts and distributing assets and property to your beneficiaries. The trustee is responsible for enforcing the terms of your trust. You can choose one person to do both, or you may choose separate people for these responsibilities.
Minor Children If you have children that are minors, you will need to name someone to act as guardian for your children, as well as a property guardian known as a conservator – to handle the inheritance you leave your kids. In general, it is a good idea to choose two separate people for these jobs, but your estate planning attorney can help you make the best decision for you.
Plan for Everything You will want to liquidate some of your assets so that there is enough cash in your estate to pay some immediate expenses, such as taxes and funeral expenses. If there are assets but not money, the executor of your Will (or your trustee as the case may be) may be put into a position to where they must sell assets quickly. If this happens, it is possible that the assets will sell for less than they are worth, which will devalue the estate.
About the Author:
To learn more about estate planning and protect you from the cost of long term care, please visit the website of the experienced estate planning attorneys San Diego CA of the Legacy, APC today.
Loading ...