Contrary to common belief, an estate plan is not the reserve of the rich and famous. Everyone has some form of an estate. And an estate plan is all that you require to protect your assets, future, and loved ones when you are no longer able to make important decisions regarding the distribution of your assets.
A well-considered estate plan can give you peace of mind about the future knowing that your assets will be distributed to your loved ones according to your wishes. A comprehensive estate plan can also help minimize taxes, eliminate probate fees and family disputes to ensure that your loved ones have less to worry about while grieving your loss.
Here are a few crucial things you need to keep in mind when planning your estate:
Your beneficiaries and their needs
When drafting your estate plan, you will need to designate who benefits from each of your assets including your insurance policies, retirement accounts and other investment accounts. It is, therefore, important that you take into account the needs and spending habits of each beneficiary. The ages and financial status of each of your heirs are some of the important factors you need to consider when writing your will.
Your financial and personal needs
An accurate assessment of your present and future needs will help you come up with a well-thought-out estate plan that ticks all the right boxes. A comprehensive estate plan can include living trusts, long-term care planning and contingencies that will allow someone with your powers of attorney to make medical and financial decisions on your behalf when necessary.
Estate planning is one of the most important decisions you can make in your lifetime. And its benefits will form part of your legacy. Understanding the crucial factors to consider when drafting your estate plan can help you devise a plan that reflects your wishes while serving its intended purpose.