Estate planning is not only for wealthy individuals. Everyone owns something or has an array of assets and belongings, and no matter big or how small, or how much they amount to, creating a plan for what you want to happen to them when you pass on is important.
An estate plan should essentially answer who and where you want your assets to be distributed when you pass. Because it can be a complex process and there are several details that often get overlooked, we recommend you hire a lawyer who is experienced in estate planning.
Understanding the Importance of Estate Planning
When you are no longer able to control or manage your estate and assets, who will? Your hard work, your family’s heirlooms, and property passed down from generations should not be left in the hands of the courts, if it can be avoided.
When you forego creating a detailed estate plan, you allow someone else to decide how your assets should be divided up, which could cause confusion and familial strife.
By creating an estate plan, you can proactively help resolve and eliminate any potential disagreements.
What are the Benefits of Creating an Estate Plan?
A few of the benefits of creating an estate plan are:
- Seeks to avoid questions about where each asset will go (who the beneficiaries are)
- May help keep associated expenses and taxes in control
- Establishes who will manage the succession of your estate (e.g., trustee or personal representative)
3 Must-Have Items on Your Estate Planning Checklist
There are several intricate details that go into creating a thorough estate plan. You should include at least the following three items on your estate planning checklist.
#1: Take Inventory of All Your Assets
No matter how much you have, you should start by taking inventory of all your assets and their respective values. This includes tangible items such as cars and homes, and intangible items such as savings accounts and stocks.
#2: Determine & Document Your Designated Directives
There are several important legal directives that you will want to designate to individuals who you trust. Some directives you should consider include:
- Health care decisions
- Financial power of attorney
- Limited power of attorney
- Living will designees
- Personal representative
- Trustees
#3: Review How Estate Tax Laws Can Affect You
Oftentimes, individuals who inherit money or property will have to pay a state and/or federal tax on the assets they are receiving. Unlike many states, Florida does not impose an inheritance or death tax, but there may be federal tax laws that may affect your estate planning.
It is important to discuss the current estate tax laws with an estate planning attorney to help your beneficiaries mitigate their potential tax burdens down the road.
Plan Your Estate Properly
Apfelbaum Law’s estate planning attorneys can help you make sure that all of your i’s are dotted and t’s are crossed to avoid any strife or confusion about your estate.
Contact us today to get started on your estate plan and ensure your assets are passed on the way you intended.
