When you are younger, you may not think much about what will happen when you pass away. You’re busy with your daily responsibilities and taking care of your family. However, you don’t know when or how your life will end, and you don’t want to leave your loved ones in a bad position. To set your affairs in order and ensure a smooth transfer of your assets, you need to establish an estate plan. It’s helpful to know what your plan should look like.
Designate Your Beneficiaries
What will happen to your financial assets when you die? Many people ponder this question. Luckily, the answer can be quite simple, and it’s up to you. In your estate plan, make sure you name beneficiaries. This will determine which family members will have the legal right to your bank accounts, retirement accounts and other finances. You’ll also want to do this for any life insurance policies. You can name multiple people, including primary and secondary recipients. Most people name a spouse or children, but the choice is yours.
Power of Attorney
There may be a time when you become incapacitated and are unable to make decisions on your own. A Power of Attorney document legally gives authority for someone else to act on your behalf. You should designate a trusted loved one or associate to make financial decisions or choices regarding your health and well-being.
You’ll likely have far more than bank accounts to pass onto other people. Consider all of your property and possessions. If you fail to develop a will and designate the rightful recipients of these items, they’ll pass through a lengthy probate process. Family members may be left to argue about who should get what you leave behind. In your will, you can decide which loved ones will receive your home, automobiles, collections, artwork and other valuable items.
Your estate plan should consider who will take care of your children if you pass away while they are still dependents. If your spouse has already died, you can name another family member to assume this duty. You may also want to include guardianship in the event that your spouse follows you in death while your children are still minors.
If you haven’t worked on an estate plan, begin today. It’s never too early to start. Contact an estate planning lawyer, like one at Yee Law Group, PC., so you can give yourself and your family some peace of mind.