a Comprehensive Guide for Estate Planning: Do’s and Don’ts

When it comes to estate planning, most people tend to think of it as something that only affects the wealthy.

While it is true that estate planning is more important for those with significant assets, it is important for everyone to plan for the future. Estate planning is a vital part of ensuring that your wealth is distributed properly and that your wishes are carried out after your death. This guide outlines the do’s and don’ts of estate planning to ensure the most effective and efficient planning process.

Do Get Professional Advice

Estate planning can be complex and it is important to get professional advice to ensure that your plans are set up correctly. An experienced estate planning attorney can help you structure your estate in a way that meets your wishes and minimises taxes. Additionally, they can provide valuable advice on ways to reduce your tax burden, such as setting up trusts or gifting assets to family members.

Do Make a List of Your Assets

It is important to make a list of all your assets before you begin the estate planning process. This list should include all real estate, bank accounts, investments, businesses, personal property, and any other assets you may have. Knowing exactly what you own and how much it is worth will help ensure that you have a comprehensive estate plan in place.

Do Update Your Documents Regularly

Your estate plan should be reviewed and updated regularly. As your life circumstances and your assets change, your estate plan should be updated to reflect these changes. It is also important to update your plan after major life events, such as the birth of a child, marriage or divorce, or if you move to a different state.

Do Plan for the Unexpected

Life is unpredictable and it is important to plan for the unexpected. Estate planning can help you prepare for the unexpected by providing a plan for how your assets will be distributed in the event of your death, disability, or other unexpected event.

Don’t Delay

When it comes to estate planning, it is important to start as soon as possible. If you wait until you are older or in poor health, it can be more difficult to complete an effective estate plan. Additionally, if you wait too long, it may be too late to take advantage of certain tax benefits or asset protection strategies.

Don’t Forget to Name Beneficiaries

When creating an estate plan, it is important to name beneficiaries for any assets that will be distributed after your death. This includes retirement accounts, life insurance policies, and other assets. Without a designated beneficiary, your assets may end up going to the wrong person or going through the probate process.

Don’t Neglect to Plan for Incapacity

Additionally, planning for death, it is important to plan for the possibility of incapacity. This includes creating a power of attorney and a health care directive to make sure that your wishes are followed in the event that you are unable to make decisions for yourself.