Estate Planning | Lessons Beyond The Will
In preparation for our Speaker Series 2023, we began our blog series about Estate Planning two weeks ago. Here is part two of three.
Estate planning beyond the will.
Many people consider a will and an estate plan the same thing. They're not. Both will, and estate plans provide instructions on handling your goods and assets after your death, but estate planning encompasses much more.
If you cannot provide instructions yourself, you'll need to set up durable powers of attorney to appoint individuals to make medical and financial decisions.
If you become incapacitated, you'll need to assign medical directives to outline the kinds of medical treatment you want (or don't want).
Assign beneficiary designations to explain who should receive money from life insurance policies, annuities, retirement accounts, and other financial accounts.
Create one or more trusts to facilitate the passing of property to your heirs and provide tax benefits for both you and your beneficiaries.
Estate planning saves time and money.
The state laws where you live, and own property determine what happens to your assets when you die without a will. If that happens, it is called "intestate." The probate court names a representative to distribute your assets, and in many cases, the surviving spouse gets this job. But, if no surviving spouse exists or another close family member is willing or able to do the job, the court will name a public trustee to distribute your assets according to state law.
While all this is happening, no one can touch your assets or carry out your directives. They're frozen until the court system combs through every detail of your estate, applies state laws, pays off debts, and decides how to allocate your assets.
The probate process involves paperwork with court appearances by lawyers; fees paid from the estate, which can be time-consuming and expensive. So, to circumvent that, you can significantly reduce the time and expense of dying intestate by estate planning.
Ensure all your investment accounts (IRAs, 401(k)s, other brokerage/bank accounts) have correct, living beneficiaries. These designations render bequests in a will unnecessary.
Create a will that names an executor of your estate.
Stay tuned for our next blog regarding estate planning to avoid unnecessary taxes, protect children, and care for yourself.
*Disclaimer
The information contained in this specific blog is for general information purposes only. You should not rely upon the material or information as a basis for doing any business, legal, or any other decisions. You are encouraged to consult a professional and investigate to your satisfaction.