5 Tips to Create an Effective Estate Plan
Although there is no exact way to create a good estate plan, there are some important points to consider before consulting an attorney.
Always remember that the most frequent answer that estate planning lawyers give is
“it depends” because there are many factors to consider when putting together your wishes for the future and a full and detailed conversation is essential.
Remember to seek the advice of a lawyer so that everything is within the framework of the law and does not leave loose ends.
1. Name a legal guardian for your dependents
There is a possibility that you and your spouse may pass away at the same time, if so, it is best to appoint a legal guardian for your children. When this is not specified or there is no will, the family court will be the one to appoint that legal guardian. It is also possible to appoint a legal guardian for family members with disabilities, such as a parent with Alzheimer's disease.
You can also name a caretaker for your pets and even assign a certain amount of money for their care. Make a list in any case of the people you consider the best candidates and why. Remember, an attorney can help you decide how, when, and the amount of money to allocate in each case.
2. Name your beneficiaries
If you want your children to be the main beneficiaries of your Estate, you should consider their age and appoint a Guardian to care for them, and allow the Guardian discretion in distributing assets to the children based on their age and maturity. If you wish to make another person your beneficiary, you can establish certain conditions for that inheritance to be delivered.
3. Select an executor
An executor is someone who will be in charge of fulfilling everything stipulated in your will; paying taxes, paying bills, closing accounts, and more. Choose at least two executors so that if one is unable or unwilling to fulfill that duty at that time, the other person can do so. Adding a Power of Attorney is advisable to give you the power to handle some legal situations that one executor cannot do.
4. Shared property
As long as your spouse survives you, the shared property will go directly to them (depending on many factors). Only after you both pass away, can your assets be inherited by someone else, for example, your children.
5. Consider a Trust
A Trust has several advantages over a will. It allows you to keep your wishes private. It also allows you to avoid probate, which can take more than a year and is very time-consuming for family members.