It’s important that you take some time to plan ahead and make sure that you are prepared for anything that may arise during the process of collecting, paying, and distributing assets. If you don’t take action now, it might not be possible to do so later. Here are four easy tips on planning your estate:
Plan for the unexpected
- Have a will.
- Have a power of attorney.
- Have a living will and medical directive, if needed.
- Create a durable power of attorney that can be used if you are unable to make decisions yourself or when you’re incapacitated due to illness or injury (like stroke).
Who will handle your financial affairs?
The first thing to consider when choosing a financial advisor is who will handle your affairs. This can be an issue of trust, especially if you are on a fixed income and have limited funds to spend on managing the details of your estate.
If you choose to leave all of your finances in someone’s hands, make sure they have the right skills and qualifications for the job. It’s also important that they are bonded or licensed by their state so that they can legally work in their chosen field without question.
If there is no one else around who can help with this task, consider hiring an estate lawyer or attorney who specializes in estate planning while also keeping up with changing laws related to wills and trusts (and other areas).
If you have a large estate, insurance can be an important way to protect yourself and your family. You may want to consider any of the following:
- Medical expenses.
- Funeral costs.
- Living expenses until you pass away or are declared dead by a doctor (which would be called an “estate plan”).
Have you considered trust?
A trust is a legal instrument that allows you to legally divide or distribute your estate in any way you choose. It’s similar to an estate plan, but it can be used for any purpose and doesn’t require probate court approval. The most common uses of trusts are:
- To protect assets from creditors (i.e., debts)
- To avoid probate court proceedings on the distribution of your assets after death, which only take place when there isn’t enough money left over for heirs who are entitled to receive more than their share
Learn how to plan ahead
While it’s true that you can never plan for every contingency, there are some situations where planning ahead can make a huge difference. If you wait until the last minute to begin your estate plan, your personal and financial affairs will be in disarray when a crisis strikes and it may be too late to fix them.
For example, if a loved one passes away suddenly or unexpectedly (like from an accident), your finances may be disrupted due to delayed or missed payments on credit cards and loans. And even if these issues aren’t serious enough for you to worry about right now, they could become bigger problems down the road as the bills come due or creditors start calling asking questions about how much money has been spent recently by family members who are still living at home but haven’t paid their bills yet either because they were unaware of what was happening around them until now…
When it comes to estate planning, there are many considerations that need to be made. From medical and financial planning to the people you want in your will, these tips can help you plan ahead for all your future needs.