Estate planning is a process that dictates how to deal with your assets and investments after your passing. The process is designed to offer you peace of mind in the event of your death. In addition, it ensures that your assets are transferred to your beneficiaries in the most efficient manner possible.
Here are six easy steps to take to make the estate planning process easier:
1. Document Your Debts and Assets
When it comes to estate planning, one of the most challenging considerations is whether or not you’ll have to sell assets or take out a loan to pay off your obligations. The only way to know if you have enough assets to pay off your debts and how much you owe is to make a list of everything you own.
2. Name Your Beneficiaries
Determine who will get your assets when you know what you possess and what you owe. You can use a trust or beneficiary designation form to leave your assets to a beneficiary, or you can build your plan. You should be aware that designating your heirs in your will is not the only option.
3. Name Your Executor
Your will usually designates an executor. If your executor is a family member, it’s a good idea to explain what they are responsible for.
4. Choose Your Guardian
If you have young children, you should name a guardian to care for them if you and your spouse die before they reach legal age.
5. Create a Living Will
“Living wills” are legal documents that outline your preferences for the future, such as whether or not you want medical care and how long you want to stay on life support. A “living will” does not necessitate the services of an attorney, but if you have small children, you should have one.
6. Get Professional Help
A will is something you don’t want to leave up to chance, even if it’s complicated. It is vital to address this issue as soon as possible to avoid excessive tax obligations and years of litigation.
How to Prepare for Estate Planning
So, how do you prepare appropriately for successful estate planning? Here are some steps to help you:
1. Have an Honest Discussion with Your Partner
You should be honest with yourself about how much debt you have and whether or not you can afford to pay it off. The author of the will has the option of disinheriting an heir who tells a falsehood about their debts. Even if he has asked his parents for money and turned him down, they may still seize his inheritance.
2. Organise Your Assets
It may be simpler to determine the value of your assets if you have a well-organised collection of them. A professional organiser can help you maintain track of crucial documents, jewellery and other valuables. Consider hiring a professional if you have a significant amount of assets that need to be sorted.
3. Add a Disclaiming Provision
Disinheriting an heir from your estate is an option if you have worries about their ability to manage your money. You can specify in your will that you do not want any inevitable successor to get a precise amount of your assets by including a disclaimer in your will.
4. Consider Using a Revocable Trust
Protect your assets by establishing a revocable trust linked to a successor trustee. You are both the grantor and the trustee in this type of trust. The grantor’s exclusive responsibility is to distribute the trust’s assets to its beneficiaries.
5. Give Your Spouse Power of Attorney
If you become incapacitated, your spouse will be allowed to manage your assets on your behalf. You can grant your spouse control over you for a limited time or indefinitely. The decision to provide a Power of Attorney for Financial Affairs to your spouse may be a good idea if you are worried about their financial well-being in the event of your death.
6. Update Your Will Regularly
When you undergo a significant life transition, you should review your will. Getting married, having children, buying a house or retiring are regular life events that need updating your will.
Conclusion
It’s critical to remember that estate planning is a time-consuming process. Consider hiring a lawyer if you’re worried about not being knowledgeable enough to handle your possessions.
Look no farther than our team of professionals at New Wave Financial Planning if you need knowledgeable advisers that specialise in estate planning on the Gold Coast. Budgeting and financial flow management, superannuation consulting and insurance are just a few of the services we provide. Call us immediately to explore your estate planning alternatives with one of our attorneys.
