The Do's and Don'ts After a Car Accident

6 Things To Consider Before Planning An Estate

10 February 2020

Yvonne Russell

Estate planning is a process that can leave people wondering if they checked off all the boxes. If you're worried about how your estate will be handled, pay attention to these 6 potential areas of concern.

Setting Out a Will

Property is often the main focus of a will, as is naming an administrator. If you have dependent children, you should also identify a guardian who'll care for them if you die or are severely incapacitated. It's also a good idea to have an estate planning attorney read through the will to spot possible problems before you sign it.

Health Directives

Folks often focus on the possibility of death when doing estate planning. An estate, however, needs to be cared for in many other medical situations. You should address questions of what you want to be done if life-sustain support is required. Also, you need to name who can make such decisions, including when to terminate support.

People with businesses also need to consider planning out health directives. Assigning voting powers in a business, in particular, is important if you become incapacitated.

Evaluating the Value of Trusts

A trust can provide a vehicle for continued income to beneficiaries. Especially if you have concerns about loved ones who may have mental health issues or who are too young to handle significant amounts of money, a trust can make a major difference. The same applies if you'd like to provide lifelong security.

Paying Taxes and Bills

An estate should be configured in a way that imposes a minimal financial burden on beneficiaries. The best way to accomplish this is to set aside funds that will be used to pay taxes. The same goes for paying off your creditors. Any remaining balance will then be distributed according to the executor's judgment.

Streamlining Processes

If there's anything that can be directly given to someone outside of a will or a trust, it's worth thinking about how to accomplish that. The classic example of this is naming someone as a beneficiary "payable upon death" for things like bank and brokerage accounts. Contact your bank, credit union, or financial institution to learn whether they offer this option and what you'll need to do to invoke it.

Documentation and Access

Supporting documentation for your estate should be supplied to at least two trusted parties, and one should be your estate planning attorney. You should also include supplying keys, codes, and passwords that allow people to access your assets upon your passing.

For more information, contact law firms like Skeen Law Offices.

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