Death is a very certain occurrence. No matter how you avoid it, everybody is heading to that eventually. They say that the best way to face death is to prepare for it. If you are the head of the family or the primary provider, the thought of leaving your loved ones behind may put a lump on your throat because losing you equates to a very uncertain financial future for them.
In order to have peace of mind that your family’s financial needs will be secure when you leave this earth, it is crucial that you prepare for it accordingly. “Laying out an estate plan is one of the best ways to ensure that your family is protected when you pass away and all your affairs are in order,” advises Lane Staley, a certified financial planner from XYZ and Associates.
An estate plan are documents that you prepare to make sure that your assets are received by the people that are supposed to inherit it. An estate plan can also include details on how much you want each of your beneficiary to receive and how your assets will be transferred to them with the least amount of tax being charged.
Contrary to what most people believe, an estate plan is not only for wealthy people. So long as you have assets that you want to leave behind and protect for the benefit of your loved ones, then you should think about taking out one. Anticipating how your assets will be disposed will help you prevent any delays and disputes over them.
Drafting a will is one of the primary inclusions in an estate plan. A will guarantees that you are able to pass on all of your hard earned assets and properties to your descendants at the least possible cost. You can also ensure that your loved ones will be able to able to benefit equally from the shares of your assets or as you see fit. Having this in place before you die will prevent any family squabbles over who gets what and you have peace of mind that everything that you own is passed on to them.
A will can also provide instructions on who among your beneficiaries will make decisions on your finances in the event that you can no longer decide for yourself. The person you will assign should be able to embody your values and strategies when it comes to handling your finances so that how your money will be spent is still in accordance to your wishes.
Aside from making plans on your assets, you should also think about how your future healthcare will be handled when the time comes that you will no longer be able to decide for yourself. Although making provisions on this matter is technically not included in estate planning, having these provisions in your living will and assigning an executor among your beneficiaries will ensure that your wishes are followed when it comes to decisions pertaining to your health in your last illness. A healthcare directive can provide instructions on what type of healthcare treatments you prefer to receive before you pass away and who you will assign to make these decisions for you. These documents will specify important healthcare decisions such as your preference for life sustaining procedures and artificial provision of nutrition.
When making these preparations, you will also benefit from making a durable power of attorney that legally enables your spouse or one of your trusted relatives to make decisions on both your finances and health when you become incapacitated.