After hearing the term estate planning, most people think that it is just for the wealthy. People with a considerable amount of money are the ones that care about what they pass on to others. While the billionaires and millionaires do have a knack for estate planning, they are not the only ones that can benefit from a good estate plan. Yes, you non-billionaire can benefit from planning; you don’t have to be super-rich and successful in distributing your possessions. Estate planning has very little to do with being rich.
Planning Your Estate
When you are going through the estate planning process, it means that you get to decide how your possessions of yours will be distributed after your death. There is no doubt that it will also decrease the burden that your loved ones have to take when making decisions such as property division. Regardless if you own a small co-op or a portfolio of buildings, don’t you want to control who gets what?
List The Assets That You Have
Having a proper estate plan is an effective and efficient method to ensure that the whole estate planning process goes smoothly. However, everything isn’t as easy as it seems. First, you need to make sure that you form a list of the things that you own. This could include real estate, investments, family heirlooms, bank accounts, vehicles, etc. You also need to ensure that you keep updating this list of yours periodically. Then, you can keep on adding the things that you acquire as your property.
Making A Will
This is one of the most important things you need to include in estate planning. Your will would be the ultimate legal document that you need for the process. This written document would dictate the entire distribution process of the property you have after your passing. In case your death occurs before the creation of a valid will, the state law has the authority to govern the entire distribution process of the estate. Also, the state law can decide who is eligible or capable of becoming the guardian of your children that are minors.
Update The Beneficiary Information
Here is the one crucial thing without which your estate planning process will not be complete. It would help if you made it a particular event annually to check and update the beneficiary information for sure. This can save your family and loved ones from probate costs and the additional burdens that come with it.
With an intelligent estate planning process, anyone would be able to do it in the best way. You don’t necessarily have to be rich, as proved in the above points. All you need to do is have some property that can be distributed amongst the people you love and trust. The process is entirely straightforward.
Having An Up-To-Date Estate Plan Is Important For All
The wealthy people and commoners can take part in the estate planning procedure. We are here to tell you that having an estate plan is essential and efficient and an integral part of one’s consideration when contemplating retirement. There are so many different benefits that one can get from creating a proper and effective estate plan. Here we are going to mention some of these right now.
- You can quickly eliminate or minimize the estate taxes
- There is a scope for providing for the orderly family business succession in the best way
- It is the perfect plan which can be used for incapacity
- Your loved ones can avoid probate and the fees which are associated with it
- There will be no form of family discord since everything will be distributed legally according to the will
- It can potentially help in the preservation of the wealth throughout several generations
- Protection of assets from divorces, lawsuits, and creditors
Having an estate plan is not just important for the wealthy but also for mediocre property owners. This helps establish proper relationships between your loved ones and settles property distributions after your death.