Estate Planning For All
It really is sad that while we are alive, we should think about death. If we don't however, we could just be making it hard for the loved ones we leave behind and just for that, it is worth it giving a lot of thought to what is going to happen after you die. We are talking here about your financial assets as well as possessions and property. Once you have planned well, take it from us, your mind will be at ease so it bears some thinking about.
The first step of course, as anyone will tell you, is making a will. A will contains directions on how you plan to dispose of your assets – to whom it should go to, how or should be divided or run or left to. If you make a will early in life, you could also look at naming someone as the guardian to your children or the executor of your will. As long as there is a will, your family is saved from the pain and hassle of going through a court probate when you die.
In the will, you could also specify a few things concerning yourself – like what kind of medical care you would like, just in case you are incapable at that point of time to take a decision yourself. Your mental or physical condition might not allow you to take a rational decision then. In this case, it would be good if you could name someone to make sure this happens and to take any decision that they feel you would have wanted them to. This person will be given the authority to act on your behalf and this could mean power over your financial assets as well as property so no one can misappropriate your money. Make sure the person you appoint is someone you trust implicitly.
The same could be done in the case of a small child. If you make a will while your child or children are still minors, it would be a good idea to appoint a legal guardian – again someone you trust to administer your estate till they reach adulthood. This will prevent people misusing your money and cheating your children out of their rightful share should something happen to you. You should also have a life insurance policy when you have young children so it will provide for them in case of your untimely death.
When it comes to your financial assets, you could always put in a beneficiary's name into your bank accounts as well as your retirement plans so that the transfers are done smoothly once you are gone. Stocks as well as bonds can also have beneficiaries mentioned and this too makes for a very easy transfer to the person you intend it to go to. This would also apply to any business you own – make sure you leave clear instructions on who is to run it and how it is to be run.
Specifying what kind of a funeral you want is also a good move so that no one is left in any doubt as to what your wishes were. Some might want to be cremated, some buried. Some might want a simple funeral, some elaborate. You could keep aside a certain portion of your money for that in a special fund. You could also specify if you want any of your organs donated.
There are certain documents that either a trusted friend or your lawyer should be able to place their hands on if you were to die suddenly. These are your will, the insurance policies, the trusts, the deeds of the properties you own, all the stocks, annuities and bonds, the bank account information as well as any safe deposit boxes you might have, the IRA and tax details, credit car details, mortgages, loans, retirement plans and any unpaid dues.
It is easy to get organized – all you need is a little bit of time to put your affairs in order. Think about how much of trouble you will be saving by putting things in order and we're sure you will press ahead with speed. Bad enough that your family will suffer emotionally in the event of your death – don't let them suffer financially too.
