There’s nothing like the satisfaction of crossing something off your to-do list, especially when it’s the “bucket list” of goals you want to accomplish in your lifetime. It could include skydiving, writing a novel – or anything to make your life complete. One thing that is often overlooked is creating an estate plan, which is arguably something that should be at the very top of every person’s list.
While most people know they should plan for the future, only 35 percent of Americans have wills, according to a recent Lawyers.com survey. Even if you think you’re too busy to hash out an estate plan or that it’s simply too confusing and expensive, it’s important to know that it doesn’t have to be that way if you plan ahead. And crossing estate planning off your list now will help give you and your family peace of mind now … and in the future.
RocketLawyer.com, an online legal service, developed basic guidelines to help people navigate this very important item for their bucket list:
* Everyone should have a will. Think of your last will and testament as a wish-list telling the world how you want your assets distributed, and it’s especially crucial if you have minor children who will need a guardian once you’re gone. Because you know your wishes better than anyone, you can make a will on your own quickly, easily, and inexpensively. Keep in mind that a will may not cover all your assets, and other documents like trusts may be necessary.
* Consider your beneficiaries. Estate planning is more about protecting people rather than assets. Common beneficiaries are spouses, children, other family members and friends, and even charitable organizations. You may want to leave everything to your spouse, and have him/her provide for your children, or you may want to set up trusts for your children. Some people choose to give to friends instead of relatives. Charitable giving is another popular option that can help your family by lowering your estate taxes, as well as contributing to your community.
* Put someone in charge. Once you’ve decided how to divide your assets, name an executor to represent your interests once you’re gone. Whether a person or a bank, your executor should be someone you trust, and who can handle the responsibilities of estate administration.
* Not all assets are created equal. Are your assets liquid, or do you own property? What about retirement accounts and life insurance plans? While each of these could be worth the same amount, different types of assets are treated differently under the law. Know the difference, and plan accordingly.
* Share your health care wishes. A power of attorney allows you to designate another person to make financial, business, legal and health decisions on your behalf when you’re unable to do so, like if you develop Alzheimer’s or are in a coma. Similarly, a living will lets your family and your doctors know your preferences for your end-of-life care, even when you can’t communicate it yourself.
* Don’t be afraid to ask for help. While estate administration is highly personal, it also involves a lot of legal, financial and tax considerations. If you foresee problems in dividing your estate, it’s a good idea to invest in a lawyer’s services. For more information on estate planning, wills and everything legal, visit RocketLawyer.com.
