Creating an estate plan is a great idea and the perfect opportunity to set your family and loved ones up with a plan of action after you pass away. You can use the estate planning process as an opportunity to provide for your family financially and make life easier for the people that matter the most to you after you pass away. There are plenty of things to consider when it comes to estate planning, which is why it’s such a great idea to hire an estate planning lawyer to help out along the way. Keep reading on below to learn some of the most important actions for a great estate plan.
1. Create a Last Will and Testament
It’s absolutely crucial to come up with a last will and testament during your estate planning. It’s a way for you to tell the world who you want to receive your assets after you pass away. If you pass away without creating a last will and testament, the state will be responsible for deciding who gets what with your assets. With a will, you can also nominate guardians for minors. That’s a great idea if you have younger children that might not be ready to responsibly handle their inheritance. Make sure you don’t overlook this crucial step towards estate planning.
2. Name an Executor of Your Estate
Another important step in the estate planning process is to name an executor of your estate. An executor is someone who is in charge of dealing with creditors, distributing assets, and filing tax returns on behalf of your estate. It’s a fairly big responsibility that should not be taken lightly. Choosing someone that is trustworthy and dependable is absolutely vital when you are trying to think about the right executor for your estate. You can always name a professional executor to handle things, but keep in mind they will want to be compensated for their time.
3. Determine if a Trust is Right for You
Trusts are a legal structure that lets you put conditions on how and when your assets will be distributed after you pass away. There can even be certain tax benefits from creating a trust. Another great thing about creating a trust is that your family will get their inheritance more quickly than if it’s all detailed in a will. If you have any questions about creating a trust, you can always reach out to the estate planning experts at Derryberry & Associates LLP.
These three steps are all vital during the estate planning process. We hope this article has given you a nice overview of how you can handle estate planning the right way. Remember that hiring an estate planning lawyer is another great tip for making sure your estate plan gets done the right way. Don’t think of estate planning as a dark and negative event, think of it as an opportunity to provide for your family after you are gone.