One of the best ways to let your family know you care is through proper estate planning.
Whether you are a prince or a pauper, being busy is no excuse for not creating an estate plan.
Why is it important?
Taxes and declining health do not cease to happen because you ignore them.
To protect your assets and your loved ones, you will need to plan ahead.
According to a recent article in Kiplinger, titled “4 Strategies to Avoid an Estate-Planning Mishap,” there are four things you can do now to help avoid leaving an estate "mess" later on.
Why?
A will outlines your wishes regarding who should get what after you die.
Contemplate a living trust.
A living trust can be helpful in bypassing probate and keeping your affairs private.
What if you are incapacitated?
Your assets will be managed as outlined by you in the trust.
By adding a power of attorney and health care directive, you can empower those you trust to make decisions regarding your finances and medical treatment.
Title your accounts according to your wishes.
Using a trust or setting up an account with a “transfer on death (TOD)” designation ensures your assets will go to your heirs.
Be sure your IRAs and other accounts have updated beneficiary and contingent beneficiary designations.
Consider life insurance.
Life insurance can pay for medical, funeral and burial costs as well provide financial support for your spouse and children.
Good estate planning cannot be done online, meet with an experienced estate planning attorney to discuss your goals.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
Reference: Kiplinger’s (August 2016) “4 Strategies to Avoid an Estate-Planning Mishap”
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