What Is Estate Planning?

November 17, 2021

A person's estate consists of their investments, automobiles, residences, money, and personal belongings at the time of their death. When a person dies, their estate is divided among his or her heirs. The assets must be divided according to the will's directions. This is known as estate planning, and it is critical for asset protection.

What is Financial Planning?

Why Estate Planning Is Important

Setting up your estate is a tedious task, but it is necessary. Without estate planning, you won't be able to pick who gets your funds, investments, and other belongings.

All beneficiaries are protected by an estate plan. If you don't choose who will inherit your values, the court will. It is crucial to the estate plan in order for it to be equitable to all heirs. If the lawsuit goes to court, it might take years and cost a lot of money to resolve. Creating an estate plan protects your heirs from inheritance-related tax issues.

With an estate plan in place, it's easier to put an end to family feuds. People who are fighting over an inheritance have a history of getting into fights. All of this can be avoided with appropriate estate planning.

Now let’s discuss some of the estate planning steps required.

Create an Inventory of Your Liabilities and Assets

Take everything you own, such as properties, cars, investments, savings, retirement accounts, jewelry, cash, and compile it into a list. Keep the list in a safe location (digital copy) with all necessary documents. You can include details such as your financial advisor’s details, just in case.
Would you mind going through the items in your home and making a list of them? Add IRAs, bank accounts, 401(k) plans, or other non-physical assets to the list.
You can place all your obligations and debts on another list for liabilities. Other financial obligations such as mortgages, auto loans, credit cards, and personal loans should all be included.
Once the inventory is created, be sure to make copies and keep them safe.

Make a Contingency Plan

An attorney or accounting firm could help you with this process. It is complex and tricky to determine the best estate plan. An estate plan allows you to control your assets if you pass away.
If suddenly you become debilitated, your family won’t need to fight for the property in court.

Choose the Would-Be Guardian of Your Children

If you don’t plan your estate, the court decides who the children’s guardian is when you pass. By doing estate planning, you choose a preferred guardian. Should you encounter a disability, you may select an individual to take care of your financial decisions.

Name Beneficiaries

Beneficiaries are already included in life insurance policies, but you need to add them to your Will or Trust for other assets. The goal is to provide for your children, parents, and other dependents. Any children from a previous marriage should be included too. If you have children with special needs, ensure they are covered in the plan.

Look for a Trusted Company

Finding the correct company can be difficult, but we've been dealing with similar situations for more than 30 years. Working with a dependable organization is crucial because it is a continuous process.

Finalize, Sign and Notarize Your Estate Plan

Remember that you need to minimize expenses and protect all your assets when estate planning. Include a strategy for disposing of unique assets that are not up for inheritance.
Would you please go through a check for any final items before signing it off? Once your estate plan is finalized, notarize it.

Update as Needed

Ensure documents are kept securely once notarized and finalized. Storing your trust or will in a fireproof safe is the best thing to do. It must be easy for your family to find, but in a place that cannot succumb to damage.
Estate planning can happen multiple times. You can update your plan as you see fit. However, after every update is made, it has to be signed and notarized.

When Is the Best Time to Estate Plan?

Nobody wants to contemplate death or the prospect of death. The truth is that it might occur at any time. It is for this reason that estate planning is advised. The worst-case scenario is for the courts to seize your assets, putting your family in jeopardy.

Solving these procedures might take years and cost a lot of money. Now is the optimum moment to start estate planning because it immediately protects your family.

Conclusion

Our families are essential to us. We want the best for them even when we have passed. Creating an estate plan and organizing for the future is the best thing you could do for them.
Each day we help people to establish their estate to be fairly distributed. Marc Fair has been in the financial industry for over 30 years, and our qualified staff can assist in many fields.

When you deal with us, you deal with the right people.

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