What’s the purpose of an estate plan?
The most important element of financial planning is estate planning. You can keep more of your assets, make sure your estate is distributed in accordance with your wishes, and leave a legacy for your family by making plans now for when you’re gone. The goal of estate planning is to protect your assets. Furthermore, estate planning is not only for the wealthy. Actually, having an estate plan is beneficial for almost everyone. Your house, your registered accounts, savings, and other investments may increase in value over time to constitute a sizeable estate. You may reduce the taxes and costs related to the estate’s various assets, speed and simplify the transfer of assets to your beneficiaries and ensure the beneficiaries’ protection with a well-thought-out estate plan.
Estate planning can be divided into two main areas: BeforeCare and AfterCare
BeforeCare includes drafting a Will, preparations for two forms of power of attorney: establishing a trust, interviewing potential executors or executrixes, and arranging a family meeting.
AfterCare involves assisting the executor/executrix with funeral arrangements, notifying institutions and creditors of the death, filing tax returns, distributing assets to beneficiaries, and settling the estate.
BeforeCare Estate Planning Considerations:
When handling matters relating to BeforeCare Estate planning, you need to focus on the following things in order to establish your plan:
- Will
- Power of Attorney for property
- Advanced Health Care Directive
- Beneficiary designations
- Joint tenant accounts
- Trust
- Life insurance
To make sure your estate-plan documents are legitimate and accurately reflect your wishes, we encourage you to have a lawyer draft your will. Additionally, make sure to designate one or more attorneys as your power of attorney in case you become incapacitated. The majority of people overlook estate planning, which can result in a number of issues later on. Importantly, having a solid estate plan that is backed by current will and power of attorney documents allows you to feel secure in the knowledge that you have taken steps to protect your future and, above all, the future of your family.
AfterCare Estate Planning Considerations
When addressing AfterCare Estate Planning, it is crucial to remain mindful of specific factors that may impact your plan, such as:
- Funeral arrangement
- Cancelling all the government documents and private documents
- Several tax returns (Final tax return, Rights and things returns, Trust)
- Digital assets and digital accounts
Who will participate in estate planning as professionals?
Estate planning is the process of ensuring that loved ones are provided for after death and that the deceased’s final wishes are carried out as intended. The executor or executrix is responsible for implementing these wishes according to the instructions outlined in the Will.
Throughout the estate planning process, three key professionals typically manage various aspects: an accountant, a lawyer, and a financial planner.