What Is Estate Planning And How To Conduct It Properly
Whether you realize it or not, everyone needs to have their estate in order because you never know what will happen. Doing so, perhaps with the help of someone like these Estate Planning Services Grand Rapids, will make it easier for you as well as your family when the dreaded moment comes. This is most especially important if you have elderly parents or even children relying on you. It’s best to be prepared and control what you can control because a lot of things are uncertain.
What Is Estate Planning?
In simple terms, estate planning is the process of arranging and preparing the disposal and distribution of a person’s assets in anticipation of death or incapacitation. The estate plan will include instructions for the bequeathing of assets to heirs, which may include some safety nets on minimizing estate tax and expediting the transfer of ownership. To get a more in-depth understanding of estate planning, and how it can benefit you, check out companies such as Asurest Estate Planning to see the services they offer.
This will ease some burden off the shoulders of the people you’ll be leaving behind. With clear instructions on how to handle your estate, your lawyer can place it into effect after you pass. In the case of incapacitation, it’ll prevent uncertainties over the administration of probate. Thus, for anyone, estate planning services are essential whether you know it or not.
How To Do Estate Planning?
Now that you know what estate planning is, here are some tips and guidance on how to conduct it properly.
Consult and Hire an Estate Lawyer
When it comes to estate planning, there are many details and intricacies that a professional who’s experienced in it would know. Because of this kind of structure, it’s best to hire an estate lawyer who’s experienced in doing these things.
The estate lawyer should guide you through the process and advise you on how to lower down estate taxes. In case you pass away or become incapacitated, your estate lawyer will also be the one to put your estate plan into effect.
Prepare a Will
After you have an estate lawyer, the next thing that you should do is to prepare a will.
Your will should state who’ll inherit your assets, such as property, cars, money, land, insurance, and others. This will give you peace of mind that all your hard work will go to your designated person of choice if you’re no longer able to distribute your assets.
Make Health Care Directives
Part of estate planning is also the power to have instructions on medical decisions, especially if you’re no longer able to decide for yourself. This is called the health care declaration, which contains instructions on how you want to be treated in certain health situations and will also appoint a representative to make health care decisions for you.
To illustrate, say, for instance, you get into a car accident that causes you to go into a coma. In that state, a machine might be the one running your organs already. With that, you can state in your health care declaration the number of days before you choose to withdraw this kind of care.
Create a Succession Plan
If you run your own business, it doesn’t have to fail or stop once you’re not there anymore. So, as part of conducting your estate plan well, you also need to create a succession plan for your company. This entails appointing someone who would replace you should anything happen to you.
At the same time, with a person in mind, you and the rest of the company can start grooming the chosen successor before anything happens to you.
Store Documents for Safekeeping
Your will, succession plans, health care declarations, and other documents relating to estate planning need to be stored safely and properly. Your estate lawyer or estate executor should have access and keep your documents in a safe place.
Here are some of the documents that you’ll need:
Will
Insurance policies
Certificates of bonds, stocks, and annuities
Information on mutual funds, bank accounts, and safety deposit boxes
Real estate deeds
Information on mortgages, debts, credit cards, loans, and unpaid taxes
Trust Funds
Information on retirement funds–IRAs and 401(k) accounts
All these documents will be very important when the time comes. So, it’s crucial that you have these safely kept and accessible to your executors to conduct your estate plan properly.
Conclusion
Estate planning is truly important, and conducting it properly is as important. Clearly, you can’t do this alone, hence the need to avail legal professionals. So, speak with an estate lawyer to get your estate in order.
The tips and processes listed above should serve as a guide with regard to estate planning.
