Nobody wants to think about what will happen after they are gone. But there are a few things that must be considered for the greater comfort and security of your family. One such thing is estate planning, whose main purpose is to protect your wealth and distribute your assets accordingly for the next generation.
In general, real estate planning can be a long and time-consuming process that should be done ahead of time in order to prevent unnecessary family disputes and reduce possible tax burdens when the time comes. Drafting a well-developed plan will basically give you peace of mind knowing that your loved ones will have financial security no matter what happens to you.
Checkout Five Important Real Estate Planning Factors:
To get you started, we have created the ultimate guide elaborating on five important factors you need to consider when developing your estate planning.
1. Hire An Estate Planning Lawyer
When talking about estate planning, there will be some hard decisions you will have to make in order to distribute your wealth accordingly.
Because this can be such a long and overwhelming process, it is best that you hire an estate planning lawyer to help you along with the arrangement, management, and disposal of your estate after passing on.
In order for things to go smoothly, you need to find a reputable and trustworthy attorney in your area.
So, for instance, if you live in Southern Nevada, look for the best Las Vegas estate planning lawyers who specialize in the matter and will offer you customized personal services that suit your family’s unique needs.
2. Write Your Will
The will is regarded as the most basic building block of the estate planning process. This is a legally binding document that provides instructions on how your assets should be handled and allocated after your death.
In the document, you can name who will receive money, investments, homes, vehicles, and other personal valuables.
Once your will is drafted, make sure you tell someone you trust where to find your estate planning documents after passing on. Also, don’t forget to appoint an executor to carry out your wishes and guide the document through a court-supervised procedure called probate to prove the authenticity of your will.
3. Designate A Beneficiary
Designating a beneficiary is the second most important step in the estate planning procedure. This allows you to transfer your assets directly to individuals without going through the probate process and regardless of what the terms of your will are.
Such beneficiary designations are often made when financial accounts are established, such as IRAs and 401(k)s, as well as with life insurance policies.
Once you choose your designated beneficiaries, it is advised that you review your choices recurrently so you can ensure you are happy with your choices. Some estate planning lawyers even ask their clients to verify their beneficiaries once a year and revisit the estate plan, so things stay intact.
4. Create A Trust
Another thing you should consider when developing an estate plan is your trust. Trust building is more like a legal arrangement that allows the third party.
You can actually be called the trustee for holding the assets and property on behalf of a beneficiary. In your trust, you can set detailed instructions and rules on when and how the beneficiaries will receive their inheritance.
Although creating trust isn’t always required, it can be especially useful in complicated situations, like if your beneficiary has special needs, has poor money habits, or if you have children from previous marriages.
All in all, trusts come with a few other benefits, including deferring probate fees and providing privacy by not becoming a public record as opposed to wills.
5. Create A Power Of Attorney
Creating a power of attorney is also a critical part of the estate planning process because it also determines who will make decisions about healthcare, finances, and other types of personal matters if you are incapacitated for any reason.
It should be a person you trust the most and who will handle your affairs for you properly and justly. This can be any of the family members, a proven friend, from a reputable and honest professional like a lawyer.
In general, there are two types of POAs, financial and health care, both of which provide the attorney-in-fact with general or limited powers.
Estate planning may not be an easy process, but it is something everyone should go through to protect their wealth and ensure their assets are safe and secured after passing on. There are several things that must be considered, from drafting a will to creating a power of attorney, all of which require the assistance and guidance of an estate planning lawyer to navigate through the process with ease.