: Look at All Those Poor People Who Died Without a Will. For more incentives to write a will, read the Forbes article “Horror Stories: When You Die Without A Will.” You may not have the assets and potential heirs of billionaire Howard Hughes, but he died without a will and it took more than 34 years to settle his estate2. If you’ve postponed your estate planning because you’re young or don’t have much for someone to inherit, consider how difficult it may be for your survivors to go through probate, which is an expensive, time-consuming, and intrusive process. Start your estate planning sooner, rather than later If you need more peace of mind than a software program can provide, you may benefit from consulting with an estate attorney, who may also recommend a tax advisor. Make sure you do some research first to ensure they comply with federal and state laws. They generally account for IRS and state-specific requirements, and use an interview process to walk you through the steps. Will-writing options are available online and through software programs, and may be a good choice for those with smaller estates and uncomplicated plans. Consider whether you should hire a professional. Updating your estate plan may take some time, but will be worth it. Circumstances change, whether it’s marriage, divorce, a growing family, the death of a loved one, tax laws, or financial situations. Also, name contingent beneficiaries in case a primary beneficiary dies before you do. Or accounts to see if your beneficiaries need to be updated. Don’t leave beneficiary sections blank in your paperwork- including retirement plans and insurance products. You may benefit from having different people representing your medical and financial interests to avoid potential conflicts of interest, as well as a backup for each. Want to designate someone to make medical-related decisions for you (if you become incapacitated) by giving them a medical power of attorney. A medical care directive-or living will-details your medical preferences if you become unable to make those decisions. Unable to carry out those duties yourself. PROCRASTINATION IS THE BIGGEST BARRIER TO ESTATE PLANNING A financial power of attorney designates someone to manage your finances if you become medicallyĬ: 2022 Wills and Estate Planning Study A trust designates where portions of your estate go, eliminating the need for probate. An executor is the person, bank, or trust company named in the will to carry out your wishes and settle the estate. Executors, trusts, financial power of attorney, and medical care directives are important parts of estate planning. Determine if you need life insurance-and how much. (There are online options for creating a will, if needed.) When you write your will, name a guardian for your children, as well as a backup guardian. This includes writing a will if you don’t already have one. This will help the executor of your estate to notify any creditors in the event of your death. Also, list any outstanding liabilities, such as mortgages, lines of credit or other debts that you haven’t paid off yet. Include the estimated worth of each item. Life insurance policies, business ownerships, retirement plans, collectibles, and more. This should include vehicles, real estate, financial accounts and investments, health savings accounts, Create an inventory of your tangible and intangible assets. Also, if you die “intestate” (without a will), a good share of your assets will be spent on attorney and court fees associated with probate.īy following this estate-planning checklist, you can rest easier, knowing that if you die or become incapacitated, your final wishes will be known. Even if you don’t think you have enough assets to leave to anyone, you’ll gain peace of mind by completing a last will and testament – as wellĪs a living will stipulating what your end-of-life or care preferences are if you become incapacitated. If you’re among the two-thirds of Americans who haven’t created an estate plan, you might want to get started now. “I don’t have enough assets to leave to anyone.” (33%) According to the 2022 survey, the top reasons people gave for not tackling estate planning were: Still, only one in three American adults actually have a will or living trust1. The pandemic raised awareness about the importance of having a will, living trust, and other end-of-life documents.
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