A Brief Look into Estate Planning

We don’t want to think about our own death or a loved one’s death. Yet, when it comes to estate planning, it is best to tackle the task at an early age. You can start the process as early as age 18; however, most people start planning after they get married or have a child. Many still aren’t sure what exactly estate planning is. Essentially, estate planning is the distribution of your assets and the taking care of responsibilities (e.g. debts) if you are incapacitated or pass away. Although it is an emotionally difficult process; it is best to have a plan after your death so as not to make your loved ones settle your affairs. The first step is to create a will. By doing this, you will ensure that your wishes are respected and completed. Yet, estate planning is more than just making a will. There are many moving parts that need to be handled, and it’s best to contact an attorney to facilitate the process.

Estate planning consists of taking an inventory of your assets — physical and non-physical. The physical assets are worth more than $100, such as the house, car, furniture, collectibles and jewelry. The non-physical are “paper” assets, such as a bank account, bonds, 401k, and life insurance policies. Once this is done, you should list your debts and memberships. Be sure to include the passwords and account numbers for each account and/or membership. It is advised to be proactive in taking into account if your family will be taken care of after your death. Do you have enough life insurance? Do you have a backup guardian for your child(ren)? Who will respect your child care wishes? Do you have a medical directive (e.g. a DNR order)? These are just a few of the questions that will need to be addressed.

An executor of your estate will need to be designated. This person is in charge of the estate planning process. If you are ill (incapacitated) and unable to make these decisions, you can give someone limited power of attorney and/or durable financial power of attorney. You can also give this person HIPAA Authorization, where he or she can access your healthcare information. Don’t forget about estate taxes!

It’s a good idea to review your will periodically, as you will encounter life events that may warrant changes to it. You should create it while you are in sound mind to ensure every task in the estate planning process is covered. Estate planning can be a complicated process, but you will be glad that you took care of it. To learn more, pease contact me or my firm.

Originally published at theresakellington.com on February 3, 2020.