![]() ![]() You can also give a trusted person medical power of attorney for your health care, giving that person the authority to make decisions if you can’t. There’s also the option to set up an irrevocable trust, which can’t be changed or revoked by the creator.Ī medical care directive, also known as a living will, spells out your wishes for medical care if you become unable to make those decisions yourself. Upon your death, the trust assets transfer to your designated beneficiaries, bypassing probate, which is the court process that may otherwise distribute your property. If you become ill or incapacitated, your selected trustee can take over. With a revocable living trust, you put your assets into a trust and select a trustee to manage the assets for your benefit (and that of your beneficiaries). In that case, when an account goes through probate, it may be distributed based on the state’s rules for who gets the property.Ī trust might be appropriate. If, for example, your ex-spouse is still a beneficiary on your life insurance policy, your current spouse might get none of the policy’s payout after you’re gone.ĭon’t leave any beneficiary sections blank. People sometimes forget the beneficiaries they named on policies or accounts established many years ago. Make sure the right people get your stuff. Those beneficiary designations typically outweigh what’s in a will. Retirement plans and insurance products usually have beneficiary designations that you need to keep track of and update as needed. Life insurance is especially important for those who have dependent children.Ĭheck your retirement and insurance accounts. If your next question is “How much life insurance do I need?” it depends on factors such as whether you’re married or if your current lifestyle requires dual incomes. There are even ways to create a will online.Įnsure you have enough life insurance. Write a will if you don’t already have one. Once you have a sense of what’s in your estate, think about how to protect the assets and your family after you’re gone. Keeping a written list of your outstanding liabilities will make it easier for an estate executor to notify any creditors in the event of your death. ![]() This could be mortgages, lines of credit or other debt that you haven’t paid off yet. You’ll also want to list any liabilities you may have outstanding. Collectibles such as coins, art, antiques or trading cards.Vehicles including cars, motorcycles or boats.The tangible assets in an estate may include: Creating an inventory is a good way to get a handle on your tangible and intangible assets. You may think you don’t have enough to justify estate planning, but you might be surprised by the amount of stuff you actually own. Often done with guidance from an attorney, a well-constructed estate plan can help ensure that your heirs and beneficiaries receive assets in a way that manages and minimizes estate taxes, gift taxes and other tax impacts. Estate Planning Checklist: A 7-Step Guide to Getting Your Affairs in OrderĪn estate plan can give you peace of mind that your assets will be distributed according to your wishes when you die.Įstate planning is the process of designating who will receive your assets in the event of your death or incapacitation. ![]()
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