We all want to live comfortable lives. That’s probably the reason why we work hard during our prime years. However, what happens when we get old and we can’t work anymore? This problem can be solved by writing a will and estate planning.
You must understand that an estate plan is an essential document, and you must be definite that you have given it a fair amount of thought before signing it. That being said, this final article will help you understand how you can make your estate plan successful.
How to Make Estate Planning Successful
An estate plan is not something you can just pull out from the shelf, present to your lawyer, and everything is set. It needs to be updated from time to time to guarantee that it meets your goals. Below are some suggetions to make your estate plan successful.
Consider Assembling a Team
We all have our differences, which means that our plans for our family when we’re gone differ as well. You have to make sure that your estate plan is designed according to your desires. Consider assembling a team of attorneys, financial advisor, and professionals that know their way around taxes.
Prepare for Long-term Care
You also want to make sure that you’re well taken care of when you get old. While nursing institutions for the elderly may provide that, guaranteeing that your house is prepared and can accommodate your needs as you grow old is essential. Furthermore, looking for services that provide insurance for homeowners will help guarantee that your home, belongings, and other structures are protected from damages.
Plan for Taxes
You also want to make sure that you plan for taxes. There are state and federal taxes that surround your estate plans, and you should familiarize yourself with these as well. This is because the transfer of your assets would often require you to pay Uncle Sam to be processed. An estate plan that considers these taxes lessens your family’s troubles in claiming ownership of your assets.
Take Note of Your Digital Assets ,Too
As we are now in an era where technology is everywhere around us, make sure that you also consider your digital assets. These include photos or documents that may have been uploaded online. Your family may not acquire these if they do not have the right to access your accounts. Although more laws are still to be made regarding this, including them in your estate plan is always a good idea.
Transfer Money While You’re Still Alive
Tax is everywhere you go, and your assets are one of its victims. If you want to make sure that your money doesn’t go anywhere else but your family, consider gifting them while you’re alive. Money as a form of gift significantly reduces the tax you have to pay, and your beneficiary wouldn’t have to worry about receiving it as it is tax-free. Just remember that each recipient can only receive up to $15,000 money gift per year.
What Happens If You Fail to Write a Will?
The question that remains now is this: what will happen if you die without writing a will and estate plan? How will your assets be distributed if you weren’t able to write instructions? Well, the answer depends on your current status.
If You’re Single
If you don’t have a will and you die while you’re single, your parents would automatically be your beneficiaries. However, if both parents are also gone, your estates would equally be divided among your surviving siblings. If you don’t have siblings, relatives from each side of your parents will inherit half of the estate.
If You’re Married
If an asset is owned by both you and your partner, then your spouse will have rightful ownership of your estates. However, if the asset is owned solely by you, then your siblings, parents, and spouse would receive equal parts of your estates.
If You’re in a Domestic Partnership
It’s important to remember that domestic partnership is not recognized as legal beneficiaries in certain states. It’s best to check your state laws first if you are in a domestic partnership. If the state recognizes it, then the same laws in married couples apply.
One way or another, we are all working toward the pursuit of our success. Sometimes it’s for ourselves, but often it’s for our families and loved ones. This is one of the inevitable truths of life. Sooner or later, we would have to leave them behind once our life ends. Make sure that you provide them with a comfortable life through estate planning and writing a will.