How To Go About Making Your Estate Plan

No one wants to think about death and dying. But as adults sometimes we need to do what is difficult, and if we don't take care of it now, we might be causing trouble for ones we love down the line, potentially causing them to lose money. Here's something about estate planning from a reader, to help you plan this and leave your family in the best situation when the time comes.

Do you have a plan for if something suddenly happens to you? For instance, you could be incapacitated by an illness. You could end up in a coma. Or, you could pass away. All of these scenarios and more could leave your loved ones in a very tough situation.

Your assets need to be protected and thus your family. This is especially true if they rely on you for your income. Because anything can happen, you need to have a plan for your estate. How your money gets distributed is a very important thing to have happen if you pass.

Before you go and talk to an estate planner like the attorneys at Frame & Frame, you should know a few of the basics as to what it involves.

Take stock of your assets

To understand how to distribute your assets, you need to know exactly what they are to begin with. Even if you feel like you don’t own much and have little to pass down to your heirs, you should still take stock. You probably have more than you think and leaving it to somebody else to do can create conflicts after you’re gone.

If you own a home, even if there has not been much equity added, you should have it appraised to understand how much it is valued at. This will be considered a tangible asset along with any other type of property or belongings. Belongings that may have value could be some antique furniture or a coin collection so they should also be appraised.

Then, you’ll need to consider any intangible assets. Any money tied to cryptocurrency is an example as is a savings account.

Add all of these things up and you will see that you have more to pass on than you had thought.

Make up some directives

Once you have a number for the value of your assets, you have to make some directives on what to do with them. For instance, a living will is a directive that outlines what should happen to your assets should you be incapacitated for an extended period of time. If you are alive but unable to make decisions then without a living will your assets will end up in a legal limbo.

Then there is the obvious last will and testament that will direct an executor of your estate to distribute the assets according to your wishes. Other directives are things like medical power of attorney and financial power of attorney.

Keep things updated

If you have already done all of these things in the past then you may feel like you are covered. It is time to review what you already have to make sure all the beneficiaries are covered and that your asset calculations are up to date.

Over the years there could be significant changes to your life that will affect your loved ones if you haven’t updated your directives. Weddings, divorces, bankruptcies and other events will all have an impact that need to be accounted for.

Penniless Parenting

Mommy, wife, writer, baker, chef, crafter, sewer, teacher, babysitter, cleaning lady, penny pincher, frugal gal

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