4 Familial Factors to Consider When Creating an Estate Plan

Everyone with valuable assets and property should have an estate plan that is up to date and keeps your family members in mind.

While a last will and testament might seem straightforward, questions and confusion can arise if things are not spelled out in detail. 

Here are some important considerations that should not be overlooked.

Children

Your children might inherit equal parts of your estate if that is what you wish. However, if you plan to distribute your assets differently, that needs to be specified clearly. 

Also, if one of your children happens to pass away before you do, you will need to determine what will happen to their share portion of the estate. You should also address potential questions about foster children, step-children, and underage children. 

In addition, your estate plan should indicate whether surviving parents, siblings or other extended family relatives will inherit anything from your estate. Don't assume that a verbal suggestion made now will be followed later.

Pets

Although it may seem peculiar to consider your pet's needs when you pass on, someone will need to assume responsibility for any animals you own at that time. 

A surviving spouse might care for them if they are in good health. However, lacking a spouse or another family member who has agreed to care for the pets, your will should state who should care for the pets or where they will go.

Separation or Divorce

If you remain separated or divorced for the rest of your life, the estate plan should clarify whether any family-held possessions, such as a car or real estate, will be given to the surviving ex-spouse. 

Some family heirlooms acquired during the marriage might be of interest to an ex-partner while any children may have no interest in these things. Specify this in your will to prevent tensions when the time comes.

Make an Estate Plan

Don't wait to prepare your estate plan. Consult estate lawyers who can provide valuable information and help you make important decisions about your last will and testament, a power of attorney if warranted, and a living will. 

Your loved ones need to know who will make critical life decisions if you are unable to. They also want to know who will administer your estate when you pass away. 

An estate plan will prepare your wishes in a legal format that cannot be questioned or changed without your consent.

Although these issues may seem difficult to deal with now, it is best to work out your future plans while you are healthy and under no pressure to do so. 

That approach makes it easier to remain objective about your decisions and to prepare family members for the time of your passing.

How to Prepare to Pass On Your Legacy and Assets

It is a sad fact of life that we all must one day pass on. Planning for your legacy and assets is important to ensure you have the right people in place to carry out your wishes. 

If you're not sure where to start, this article offers some advice about preparing for passing on what matters most.

Consider Leaving a Will

A will is a legal document stating not just how your assets should be distributed after you pass on, but also discusses animal care and even child guardianship. 

It is an important document that will allow your friends and family to adequately mourn your death without having to worry about all the loose ends because you would have already dealt with that for them.

Create an Estate Plan and Gather Important Files

An estate plan outlines what happens to your assets and property when you die, including appointing the executor of your will and naming beneficiaries for insurance policies, bank accounts, and retirement plans. 

This allows for the smooth transfer of your assets and often prevents unnecessary taxes upon your loved ones. Make copies of all vital records such as birth certificates, marriage licenses, and passports so they can easily be retrieved by family members in case there's a need for them later.

Provide Information About Next of Kin

If possible, provide contact details for close family members who may not be aware they are listed as emergency contacts with financial institutions or other service providers where personal information must be provided to them upon request.

Consider Leaving a Letter of Instruction

A letter of instruction is typically left for family members to let them know what they can expect after you pass on, including how your assets are managed and any information that may help ease the transition into their new lives without you. 

Discussing with beneficiaries about who will inherit which accounts is important, so as to remove any confusion about where each account belongs once it comes time to transfer funds or close accounts.

Discuss With Your Legal Advisor the Best Options for You

Discussing your options with an estate planning attorney is important to ensure you have the right plan in place that suits your needs. Also, creating an accurate list of all physical and financial assets can help family members access accounts, transfer money, or claim property without issue after you pass on. 

Another option is to set up a trust where certain assets are transferred to the trustee, and it dictates who administers the afore-mentioned assets for the beneficiary.

It is important to prepare for the passing on of your unique legacy and assets. Whether you have dependents or not, it is important to be prepared for when tragedy strikes. You may be and feel young, but we never know when it is our time to move on.

How to Plan out Your Estate Before You Die

Some people never consider the possibility of creating an estate plan because they believe that it’s particularly difficult. In all actuality, there are simple things you can do to get started with building an estate plan as soon as today. 

The truth of the matter is estate planning does not need to be difficult, especially if you follow this 5 step checklist to prepare your documents.

Advance Directive

An advance directive typically referred to as a living will, is a document that provides guidelines as to what medical personnel are authorized to do if you become incapacitated in the future as to which you cannot tell them what your preferences are. 

You can include details such as whether they should utilize life-sustaining measures like breathing tube and feeding.

Life Insurance Policy

If you own a home or if you have children, it’s especially important that you get a life insurance policy as a part of your estate planning efforts. 

A life insurance policy can help to cover estate taxes and pay large amounts of debt, in the event that you pass away and the aforementioned expenses get passed on to your spouse or family members, such as mortgage payments for example.

Power of Attorney

A power of attorney (POA), gives another individual the legal authority to make decisions on your behalf. Most experts recommend that you should establish a power of attorney for your finances and your health as well. 

While this can be the same person, it doesn’t have to be and you can choose to give an estate planning attorney, power of attorney over your finances or health care.

Create a Will

Creating a last will and testament is one of the most basic and critical aspects of estate planning. If you pass away without a will, this enables the government to redistribute your assets according to state law. 

The key thing to consider when creating your will is to determine how many assets you possess and the people that you would like to get them.

Digital Assets

In today’s world, most people have digital assets in digital wallets like Paypal, Bitcoin, Monero, and more. When it comes to creating an estate plan it’s important that you don’t forget about your digital assets. 

As such, it would be a good idea for you to list all the digital assets you possess along with passwords and usernames, as to which you can give someone you trust so that they can access your accounts.

As you can see, the process of establishing an estate plan doesn’t have to be difficult. The most important thing to remember is that you should be aware that any asset that you fail to include in your estate plan, will be surrendered to the government. 

In addition to that, take a look at any debts you pay possess or things your children may need if you pass away, and consider these factors when it comes to planning your estate accordingly.