4 Tips for Estate Planning

Once a person decides they need estate planning, it is essential to take action. However, most people do not know where to begin and often let the idea linger for years. However, with these four tips and the guidance of an estate planning attorney, an individual can set up an estate plan.

Note: To get started, one must and note all their assets and liabilities. Ideally, one should be thorough in this approach as some assets may appreciate over time, and it is crucial to omit anything out of the plan. With this information, one will have an easy time working with attorneys and passing on assets after death.

Determine: Now, it is one thing to sit down and note what a person owns; it is another to determine who gets what. Of course, most people will want to pass their money down to their kids or spouse. However, it is necessary for an individual to speak with friends and family and decide what to give away. For example, a nephew may have an affinity for a painting or piece of jewelry. In reality, it is essential to do this early on since it is easy to do so when a person is alive and under no duress.

How: Once an individual decides who gets what, they will want to determine how to pass on the items. Now, there are two different options that one must explore. One way to pass down assets is to do so outright. This is the best option for a person with little assets who does not expect a court battle or other problem. On the other hand, a person with substantial assets and a lot of heirs should use a trust to disperse his or her wealth. This is an important choice one must not take lightly as it can have serious effects in the future.

In Charge: Finally, it is necessary to appoint someone to be in charge of the process. Usually, one will have their child, sibling or spouse be in charge of the estate. When having a hardworking and intelligent person run everything, a family can avoid problems after someone dies. Remember, one should choose wisely as this person will have a lot of power.

With these four easy to follow tips, an individual can set up his or her estate plan and not worry about problems arising in the future.

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