Estate Planning – The Big Words Blog Site

My blog focuses on Financial Literacy/Money. One of the keys to wealth accumulation is passing it on. Some people have plans for this while many do not. The following contributed post is entitled, How To Get Stated With Estate Planning.

* * *

Image credit

What comes to mind when you think of estate planning? Is it something only the wealthy do, or perhaps something you believe is unnecessary to consider?

According to Financial Sense, a staggering 56% of Americans recognize the importance of estate planning, yet only 33% have taken the crucial step of documenting their end-of-life plans. Even more concerning, as revealed by a Trust & Will survey, only 31% have a basic will in place. This underlines the critical need for understanding and implementing estate planning.

Whether you don’t think you need to have a plan for your estate in the event of your death or you’ve simply not gotten around to it, these basic tips can help you get started to get something solid and legally binding in place.

Create A Will

A will is the cornerstone of a comprehensive estate plan. It lets you specify who will inherit your assets, ensuring your wishes are fulfilled. Without a will, your assets may not be distributed as you would have wanted. By having a will, you can rest assured that your loved ones will be taken care of according to your wishes.

You need to be of sound mind to write a will, so it’s best to have it witnessed and notarized to give it additional legality and not left too late, especially in the face of a life-altering health diagnosis.

Power of Attorney

Designated power of attorney gives another person legal authority to manage your finances or make decisions for you. The person you give power of attorney to needs to be someone you trust, and it is an irrevocable directive that enables them to make decisions if you become incapacitated for any reason.

There are different types of powers of attorney, with financial or health care being the most common. Appointing a person as soon as possible can ward off confusion or court intervention in emergency situations.

Set up a healthcare directive

A healthcare directive, also known as a living will, allows you to outline your medical preferences if you cannot communicate for yourself. Your healthcare directive can include instructions about life support, resuscitation, organ donations, and more. This allows you to share your wishes so that those in charge of making healthcare decisions on your behalf know your wishes and what you want.

A living trust

If you have significant assets, a revocable living trust can be a smart addition to your will. A trust like this can help avoid probate, offer privacy, and ensure a smoother transition of property to beneficiaries. Trusts can also provide for children or individuals with special needs over time, and they should be something everybody considers if this is applicable to their lives.

Explore alternative options

Traditional estate planning isn’t the only route available to people today. Suppose you’re looking for a more personal or purpose-driven estate planning approach. In that case, there are organizations such as Karmic Legacies that offer unique options for you to consider. Companies like Karmic Legacies offer you an option to have your legacy live on once you have passed. You can leave property that can help others and help you create a lasting effect longer after your death, or for past life healing for others to help them move forward, or for those who are unsure of who to leave property to, or don’t have anyone to leave it to.

You can preserve your property as a way that helps others at a time in their lives when they need it most, meaning that you can continue to give and have an impact on the world around you.

A key focus of my blog is Financial Literacy/Money. A critical component to one’s financial strategy is their estate planning. It’s not the most comfortable and in some instances exciting area to deal with, but it has far reaching implications for one and one’s family. The following contributed post is entitled, Major Keys For Estate Planning.

* * *

Image credit.

Estate planning is not just for the rich and famous. A well-thought-out estate plan can help alleviate stress from your family members when you have reached the end of your life. It can help get your affairs in order so that you can have the peace of mind knowing that your family is secure after you pass on. If you are looking to start estate planning, here are some major keys that will help you along the process.

Get Together A Team

Get a team of people that consists of your key financial advisor, your tax professional and your estate planning attorney from Wyolaw Law Firm. This team of very important people will help you draw up and navigate the perfect estate plan just for you. It may seem like having all these people involved will make things confusing, but quite the opposite. These people will ensure that all your assets will be given out to the appropriate people with little to no confusion.

Write Down Your Will

A part of every estate planning is writing down your wishes. This is not a sentimental exercise. This is a binding agreement, so make sure that you clearly list out all your wishes. Make plain how you would like to handle your probate assets and other possessions. It should include a healthcare power of attorney or proxy, a durable financial power of attorney, a living will, a health insurance portability and accountability act release form, and your last will and testament.

These things will assign the person who you want to make health decisions for you, who will make the financial decisions for you, what treatments you do and do not want if you are unable to speak for yourself, who can have access to your health records, who are the designated beneficiaries of your property and who will be the guardians for your children who are minors.

Set Up Guardianship For Minors

If you are caring for any minors, this is a very important step if you do not want the state to decide what to do with them. Determine who you want to look after your children or if you take care of someone with special needs. Before you give off that person’s name, make sure you consult with them first. You need their permission. Keep in mind that this person will also be managing any money you allocate for your child’s benefit.

Think About Getting A Trust

A trust is just a place that holds money for your children. You get to have a say in what goes into the trust, who has access to it, and how it will be allocated. As long as you execute it well, your estate plan will be executed just the way you intended.

Prepare For State And Federal Taxes

Find out if your estate will be subjected to state and federal taxes. If so, you will likely have to pay in cash up to nine months after your death. Some people’s assets are not in cash, which could cause some issues. If that is the case for you, you may have to sell your assets. Talking to an estate planning attorney can help clear this up.