No one wants to think about the possibilities of their early passing, but some things should be taken care of beforehand, just in case. An estate plan is the plan we leave behind that highlights where some of our assets are going to go. You have the right to choose where your assets go after you die, so you should take advantage of that. The last thing you’d want to leave behind is a mess that will cause many arguments amongst your loved ones. With a clear and concise plan, you can avoid the headaches and make sure your plan is followed. A portion of your assets that should be included in this plan is your estate, or property. Reviewing your plan annually makes sure that everything is still clear and up to date. We’ll be going over some steps in making sure that your estate plan is still everything you’d like it to be.
Making a will is the best thing you could do to make sure your assets are distributed to where you’d like them to be. In this will, you can state the plans you have for your estate. If you have children, you can leave the house for them to inherit the property. If they are too young to care for themselves, making sure you name a guardian is another important step in being able to leave your home to your children. Without a guardian, it may prove difficult in your children inheriting the home. There would be legal disputes and an attempt at finding a new guardian. To avoid this, clearly name a guardian and be sure to involve them in this decision.
Making an advanced healthcare directive is another decision that should be made before you may actually need one. An advanced healthcare directive is legal paperwork in which you list a person that will make your decisions for you, in need during a health crisis. There are times when a person isn’t fully lucid and wouldn’t make the appropriate decisions for themselves, so this directive can also give the power to an individual to make plans for you, in case you pass away. This will also include the ability to make a living will and help you move your assets to their appropriate destinations. Making sure that you have a health care directive, and that it is current, should be done annually.
Purchasing life insurance, or keeping your life insurance policy up to date, is a big deal. Even if you leave behind a home that you own to your children, it doesn’t mean that they will be able to keep up with the financial responsibility in owning that home. Your life insurance policy can ensure that enough funds are left for all their financial burdens to be covered, on top of leaving them enough to plan things such as your funeral. Life insurance can be very affordable, but it can be the best thing you could leave behind for your loved ones. Knowing you’ll be taking care of them one last time is something you’ll be glad you did.