Preparing for the future can be a wise decision when it comes to your legacy. Relieving the burden of handling your estate can provide some comfort to the family you leave behind. No one enjoys thinking about death, but it’s an inevitable event. Providing the security, your family needs can be a comforting fact.
Having an estate plan provides an individual with choices in regards to their material items. Knowing you have a concrete plan for your final wishes removes all clouds of doubt. Personal possessions represent the hard work of an individual.
That person should be the one to decide how their items are handled when they are gone. Planning can be a simple process by following nine simple steps.
The first set of steps involves creating three lists. This first list consists of physical and abstract possessions owned by the individual. Starting with the home, inside and outside, you should identify all items with a value of $100 or more. The next set of items will be the abstract valuables such as bank accounts, investment, and insurance polices.
All of these items are considered your assets. They should be in one complete list labeled assets. The next list will contain all outstanding debts. This may include mortgages, auto loans, active credit cards and revolving lines of credit. This 2nd list are debts and should be labeled accordingly.
The final list will identify any memberships for the individual. Some of these may include health clubs, wholesale grocery stores or auto clubs. This 3rd list will benefit your family members to send notifications of death. An attorney generally has a fee for this service.
Creating this list allows your family to complete this task for free.
Now that you have these lists completed the next steps involve identifying beneficiaries. Choosing an individual or multiple people to handle your affairs is important. This helps to make handling the estate simple. Ensuring that documents designating individuals are constantly kept up-to-date is essential for the estate plan to be effective.
Charities that you would like to benefit from your estate should also be listed. This provides the beneficiary with instructions on how to handle any contributions that you wish. Providing a clear and concise plan to family members or close friends makes this process less stressful.
Discussing important items, such as how to distribute your belongings, can be a wise decision. Consulting with a spouse or family members can help you decide the best course of action.
The next steps involve finalizing your plans. While changes can be made throughout your life it is important to make concrete decisions now. Choosing a responsible and trustworthy individual to handle your estate is a wise choice. This will ensure that your wishes are followed as they have been outlined.
Next you should review everything you have gathered and decide if anything needs revising. Items such as insurance policies or tax concerns can be reviewed by an agent or accountant.
Once things have been reviewed contacting an estate attorney will be the final step. This will provide an official document that will be effective in regards to the courts.
The last important factor is making changes if needed. Keeping your plan constantly updated ensures your future will be handled as you specifically wish.
Removing the stress and confusion provides a family with a high level of comfort. Using these simple steps to plan your estate can remove the doubt in the event of death.
This proactive decision allows an individual to make sure their possessions are handled with care and love.