As you get started with estate planning, you can work off a simple checklist.
This will help you keep your documents in order and you can compile them into an "in case of death binder. "take inventory — collect your financial documents; bank accounts, life insurance policies and investment accounts, as well as any notes on property and important personal items. Knowing where you stand will help you start planning. Determine your needs — once you've completed your inventory, you might find you have a few unexpected needs. Maybe you'd like more life insurance coverage , for example. If you have minor children, you'll also want to think about potential guardians, as well.
Estate planning is the process of thinking through choices, and is best done as part of a thoughtful, realistic analysis, rather than relying on the default estate plan provided by state law. The state law default plan (“one size fits all”) rarely reflects what any individual client would want. Effective planning includes consideration of three major questions: what if i pass away tomorrow? what if i live for a long time? what if i become disabled? each of these questions triggers follow-up questions: who will handle things when i cannot? what will happen to my assets? a natural follow-up to basic estate planning is lifetime gift planning.
Reviews & media estate planning, in plain english get the need-to-know basics about wills, trusts, avoiding probate, and planning for incapacity with estate planning basics. This book lays out your options in plain english, guiding you to the right estate plan for you and your family. Learn how to: - make a will or living trust - name a guardian for your children - avoid probate - use durable powers of attorney, and - prepare a health care directive. The 12th edition is completely updated to reflect the latest information about estate planning.
Basics of Estate Planning
For most of us, having an “estate plan” usually conjures up images of the rich and famous leaving behind sprawling mansions and countless millions to their heirs.
The fact of the matter is that everyone needs an estate plan to protect their legacy and provide for their loved ones. This estate planning checklist will help you understand the basics.
“will be appreciated by those with modest estates who want a quick overview. ” library journal “one of the simplest and best overviews of the estate-planning process. ” the wall street journal “ a search of more than a dozen books in my reference library uncovered a mention of the stepped-up basis in all, but only estate planning basics…makes it clear that the basis of inherited property is adjusted up or down. ” florida sun-sentinel.
A basic estate plan is an estate plan that includes legal documents which, together with proper nonprobate asset beneficiary designations, are likely to address the estate planning needs of most people, but which avoid the complexities of drafting and enforcing a trust. The term “basic estate plan” is not a clearly defined term in the legal industry. We use the term “basic estate plan” on this website to mean an estate plan made up of some or all of the following documents: a simple will , a durable power of attorney for financial matters , a durable power of attorney for health care , and a health care directive.
The major differences between a power of attorney and a will are often not understood by my clients when they first contact me. Both are very important documents when it comes to estate planning. In many ways they are the most important documents of someone’s estate tips on how to prepare for your long-term care needs when considering the possibility of long-term care, many people prefer to tell themselves they won’t need it. However, the reality is that two-thirds of adults will require some form of long-term care. Meanwhile, others know they may need it but feel like they’ll be.
We are often asked what type of estate planning document is the best. When it comes to estate planning, there are several options available to individuals who want to ensure that their assets are distributed according to their wishes after their death. Two of the most common options are creating a trust or drafting a will. In this blog post, we'll explore the pros and cons of these two options, as well as other estate planning options. A trust is a legal document that sets up a relationship between three parties: the person who creates the trust (the grantor), the person or institution who manages the assets held in the trust (the trustee), and the person or people who benefit from the assets in the trust (the beneficiaries).