Fortunately, U.S. News & World Report has helped you jump-start your estate planning basics with a recent article titled “4 Steps for Simple Estate Planning.” What are the four?
- Prepare a master information document. Think of this as a single collection of all the information your heirs will need from the location of important documents, to bank accounts, passwords, and lists of assets. Such information allows your heirs to step in when the time comes and to quickly assume command of what needs to be done, to the benefit of all of your loved ones.
- Purchase a term life insurance policy. Calculate the financial costs your loved ones might bear in your absence. Oftentimes, as good solution is life insurance which provides instant liquidity just when needed most.
- Write a will to ensure the right persons receive your possessions. Not only do you need to draft a will, but you need to keep it current. If you have a will with a few years on it, then it is time to dust it off and bring it up-to-code.
- Include guardianship plans in your will for your dependents. Assets aside, the most important “assets” for the parents of minor children are those children. Who would rear them to adulthood in your absence?
Take a look at the original article. You will enjoy the stories and bits of advice it offers as you consider your own plan. Although these four steps are important, they are by no means exhaustive. What issues arise when you ponder your own estate plan and how can they be resolved? Procrastination is simply not an option. Once you understand and appreciate what is at stake, bring in competent counsel to assist you and your family.
