Estate planning is beneficial for people of all ages and income levels. It can ensure that your final wishes are carried out and that your loved ones are taken care of. However, establishing an estate plan may seem intimidating at first.
Here are a few tips from our friends at W.B. Moore Law LLC. for creating an effective estate plan.
Consider a Trust
Even if you already have a will, think about setting up a trust. The document may be a little more expensive than a will to set up, but it has numerous benefits. For one thing, it can help your heirs avoid the probate process, which can be time-consuming and expensive. A trust also can give you greater control. For example, if you listed your minor child as a beneficiary, you may state that you want his or her inheritance to be used for college.
Work with an Experienced Estate Attorney
Although you can set up an estate plan online for free, it is not in your best interest to do this. Estate plans are very complex. If you don’t have extensive knowledge of the estate laws in your state, you could make costly mistakes. That is why it is worth it to hire a Fort Collins, CO estate attorney. An attorney can help you establish a valid estate plan that clearly states your wishes. He or she can make helpful suggestions and answer all of your questions.
Discuss Your Estate Plan with Your Heirs
At first, you may feel uncomfortable talking about the details of your estate plan with your heirs. You may worry about offending someone and starting a family fight. However, it is better to discuss it now than having your family members surprised later on. For instance, if you plan to leave one child a higher inheritance because he or she isn’t as financially successful as your other children, talk about that during your family meeting. If your heirs understand the reasons behind your decisions, they may be less likely to be angry or hurt in the future.
Name the Right Executor
The executor is responsible for paying your outstanding debts and distributing your assets after you die. It is a huge responsibility, so you should be careful about who you choose to take on the role. Ideally, an executor should be honest, organized, financially savvy, impartial and communicative. If possible, list a second executive in case your first choice can’t perform the job for whatever reason in the future.
Update Your Estate Plan When Necessary
An estate plan is rarely a one and done deal. It is normal to experience major changes throughout your life, like the birth of a child or divorce. When something in your life does change drastically, it is essential to have another look at your estate plan. You might need to make changes to it to reflect your current situation.
If you need assistance with your estate plan, you may want to schedule a meeting with an experienced estate lawyer as soon as possible.