Deciding on and executing your estate plan can be one of the most important and influential decisions you make during your lifetime. Your estate consists of everything you own, from your house to your car to any other assets, and it is more important than ever that you keep track of and decide who has access to these assets through an estate plan.
A successful estate plan will get your assets to who you decided to pass them onto without fuss and do this with a minimal amount of tax, court fees, and legal costs paid out at the same time.
Having an estate plan that details your exact instructions is imperative, though it can be difficult to decipher what directions you need to provide. Here are the top situations that you need to include instructions for in your state plan.
1. Unexpected Illness
If you become ill unexpectedly, whether physically or mentally, and can no longer offer further advice or instruction, you need to provide specific instructions on what to do in this situation prior to this. This can be regarding your healthcare when you become ill or to do with your assets, for example, naming a trusted financial power of attorney who will take responsibility and handle your finances for you when you are unable to.
It’s also vital that you draw up your instructions sooner rather than later in case of unanticipated illness that can affect your estate planning.
2. Guardians for Minor Children
If there are minor children who will be left without a guardian when you are gone, you need to name another guardian for them and an inheritance manager. It can be incredibly frustrating and challenging to sort a situation like this without these instructions; providing these within your estate plan will make the process much easier for the children and provide them with immediate care in the event of your passing.
3. Irresponsible Loved Ones
While you may have already drawn up a will which decides who of your loved ones will be receiving your assets and how much, this does not account for how they will respond to receiving this asset. If you know that a particular loved one struggles with managing their finances, you should consider providing them with financial protection within your plan. This way, you can ensure that they will be safely provided for, and your hard-earned assets will remain in good hands as well.
4. Funeral Arrangements
It’s essential that your loved ones know what kind of ceremony you want to be remembered by when the time comes and that you provide adequate financial resources to provide for this, such as a payable-on-death transaction at your bank.
Accessing Documents to Execute the Plan
After you pass, those responsible for your documents will need to access them in order to execute your estate plan. It’s a good idea to keep your documents thoroughly organized, safely secured, and in a place that is accessible by your attorney-in-fact or executor.
