Estate Plan Maintenance

Estate planning is one of the critical elements of a comprehensive financial plan. Who inherits the assets, how the assets are to be used or disbursed, and how best to minimize taxes are all questions estate planning can address. Thus, considering these questions as part of a plan is critical, but as critical are a few small steps you can take to ensure that all documents impacted by your estate plan are up-to-date and are in alignment with your plan.

A few of the steps you can take are as follows:

Beneficiaries

Certain types of assets including retirement accounts and insurance policies typically allow beneficiaries to be named, and those beneficiaries inherit the asset should the account owner pre-decease them. From time-to-time it is necessary to change beneficiaries, most often due to death of a named beneficiary or divorce. Don't forget to check beneficiaries on all relevant accounts, including insurance policies and employer retirement plans.

Documents

At a minimum, in our opinion an estate plan should include a will, a financial (or durable) power of attorney, and a medical power of attorney. The first two documents should be kept in a secure location, typically a safety deposit box, but you'll want to keep the medical power of attorney in a location that is accessible at any time. If you need treatment that only the person granted your medical power-of-attorney can authorize, you'll want that person to be able to present the power-of-attorney to the treating hospital at any time. Lastly, make sure that those acting as your executor and financial power of attorney are aware of the location and have access to the relevant documents.

Executor and Power-of-Attorney

As with named beneficiaries, it makes sense to review who you've chosen as your executor, as well as to whom you've granted powers-of-attorney to ensure that they are still willing and able to function in the capacity in question. Additionally, be sure that those you've chosen to serve in these roles are aware that you would like them to act in the chosen capacity. While it is certainly flattering to be chosen for a position of such trust, some may not feel comfortable with the responsibility it entails.

While estate planning isn't the most cheerful topic to contemplate, knowing that your affairs are in order does bring some peace-of-mind.

Estate Planning is not something that everyone wants to think about. But it's an important thing to consider if you have a significant amount of property or wealth. Even if you only have a small amount of wealth, you want to make sure that if you pass on, your property goes to the right people in your life.

Without the proper planning this may not happen. Let's say for example you have no children and have yet to be married. Let's say also that you spend all of your time working with a children's charity, and that if you did pass on you would want your money to go to this group.

Without the proper planning, your money could go to your closest surviving family member. This could be a sister that you don't get along with or a cousin you never knew. If you know where you want your money to go, then estate planning should be a top priority.

Nobody likes to think about death. When you start to think about estate planning, you start to think about how you might die. It's a sad thing to think about for many people. But you should try your best to stay strong so that those that you love can get what you would've wanted them to have.

Another way to approach the issue is to do it with an experienced company. Estate planning companies with experience dealing with this sort of thing can make the process much easier. They know it's hard to think about these matters, so they make the questioning process as brief as possible for you. Working with a professional in the field will make the whole process much easier.

You can do some shopping around to find the right company. Your estate planning choices are some of the most important choices you will have to make in your lifetime. You want to make sure that you choose the right company to handle them.

It is important to note that the estate planning process doesn't have to take a long time. You generally know how you would like things to be worked out before you begin the process. Your estate planner will just help to make your words legally binding, and remind you of issues you might have forgotten.