Planning on Dividing Your Estate? This Estate Planning Guide Got You!

Creating an estate plan gives you peace of mind because it assures you of a secure financial future and that the distribution of your assets will be according to your wishes. However, don’t set up your estate plan and forget about it.

Realizing the importance of estate planning, we have decided to cover it in this article. Therefore, stick around to know and learn more about estate planning in this estate planning guide.

Let’s go!

Why Do You Need Periodic Review of Estate Planning?

Circumstances and priorities may change; hence, you must periodically review and update your estate plan to remain consistent with your goals and wishes. If you fail to update your estate plan, the dramatic shift in laws, taxes, and family dynamics can seriously affect your plan. The estate planning attorneys have the knowledge and experience to sort out this issue.

In this article, we will discuss the importance of periodic reviews of your estate plan and the measures you can take to keep it up-to-date and effective. Here are some reasons why a regular assessment of your estate plan is necessary.

Failure of a Fiduciary or Representative

The person you might have named in your outdated estate plan as your representative may be unfit after some time due to age, medical conditions, or death. Or, you may have someone trustworthy that you wish to name as your fiduciary. This review is an excellent step to ensuring a successful plan.

Need to Update Beneficiaries

You might have new family members, such as a new child or grandchild, that you would wish to have as beneficiaries. In unfortunate circumstances, your relationship with one of the beneficiaries might have changed, and you no longer want to include them in your plan. A trusted state attorney must do this review.

In the Event of Missing Critical Plan Components

You might have created your Last Will as your only document. This document can only be helpful when you die. You must have other documents, such as Health Care Proxy, HIPPA, Durable Power of Attorney, and Living Will documents.

These documents are essential for your loved ones if you cannot independently make financial or medical decisions. Additionally, it is a requirement to update some records periodically. Some banks may only accept a Durable Power of Attorney if it has lasted for less than five years.

Changes in Technology

It is vital to consider how digital assets such as online businesses, web domains, cryptocurrencies, and credit card reward points will transfer in your absence.

Moving or Owning Property Out of State

The law governing probate and estate planning differs from state to state. In this case, you should work with your estate planning attorney to ensure that your plan adheres to the laws in your state.

The property you own in another state must have a personal representative probating in that state; however, putting your property in a revocable trust can boost the efficiency of the change.

If Your Child Might not Benefit from the Inheritance

Every parent would not want a situation where their heritage is subject to division with an ex-child or in cases where the beneficiary has credit problems. Unpaid creditors have claimed such inheritances; therefore, if you have these issues, please discuss them with your trustworthy attorney.

Estate tax liability

You must keep reviewing your plan regularly to avoid unnecessary taxes because the estate tax landscape is ever-changing. This option can save your estate some money.

Top Estate Planning Guide Tips You Must Know

Planning your estate is one of the most difficult tasks that you need to do. This will not be an easy ordeal by any means. Therefore, having a clear understanding of the step-by-step process is absolutely vital.

You need to have clarity in every small detail to even make a mark. Therefore, we have decided to make a small checklist of what you must do to plan your estate.

Let’s go!

Tip #1

The first thing that you need to do is to make a list of all the items of importance. This will help you understand the scale of your estate. Try to include every tangible asset you possess, or that is of importance. 

However, keep the sentimental items out of this list. This list should be strictly for items that have financial value. Including them might complicate the whole endeavor.

Tip #2

Assets can be segregated into physical assets and non-physical assets. Non-physical assets include financial assets or entitlements. Non-physical assets could be bank accounts, brokerage accounts, IRAs, etc. 

Try to be as detailed as possible. Specify the account number, access details, and the physical location of the account. All of these are important and can help your successor track the account. 

Tip #3

Estate planning is not just about handling our assets. You are also handing out your debt to your successor. Therefore, you need to be equally vigilant about the debts. Otherwise, your successor might face problems. Hence, this is one of the most important factors to consider in this estate planning guide.

Therefore, make sure to make this list detailed and comprehensive. However, we suggest you clear all your debts before going forward. This will help you streamline the overall process. 

Tip #4

Once you update and curate all the lists, you can move to the next stage. This is the final stage of the whole process and is very important. You need to start or authorize the “Transfer On Death” designations so that your successor can access your properties after your death. However, this point will change as per state regulation.

As a result, you can take the help of a lawyer to breeze through this stage. However, if you are planning on doing this by yourself, you need to get an approved Probate application. Otherwise, you will not be allowed to distribute your estate. 

The End

In conclusion, a periodic review of your estate plan is vital to ensure your intentions or wishes are correctly executed and your loved ones are protected in your absence. An un-updated estate plan can cause family disputes, unintended beneficiaries, and unexpected taxes.

Additional:

• How To Find The Right Mississauga Real Estate Lawyer For You
• What You Might Need to Know About Planning for Temporary Buildings
• Cost of Building A Commercial Building | Complete Planning Guide