Posted: 02/09/2007--25/11/2008 || Rate this Article: 3 || Views|| Sign In || Register ||Hello Guest
The primary purpose of estate planning is to transfer your assets according to your wishes after you die. If you have an estate plan in place, the transferring of your assets will go more quickly, and there will be a minimal amount of tax consequences. Also, having a plan in place will limit the amount of arguing that can ensue between family members over your assets. The more decisions you make now the less worry your family will have later. This article outlines the steps that need to be taken when drawing up an estate plan.
Inventory Your Assets
When writing an estate plan, you need to inventory and assign a value to all of your assets. Separating your assets into categories will make this process easier. You will need to make categories for your residence, savings, investments, life insurance, etc. Separating things into categories will help you organize all of the documentation that you will need to give your lawyer.
Professional Team of Advisors
You should not try and write your estate plan without the help of professionals. Most people do not have the expertise to write an effective estate plan. Your team should include experts in estate planning such as insurance underwriters, accountants, trust officers, and an attorney.
Insurance underwriters can review your coverage, and help you organize everything your accountant and attorney will need to help you with your plan. They can also help you avoid cash flow problems upon your death. Many underwriters can also advise you on ways to avoid unnecessary death taxes.
Accountants, like insurance underwriters, can advise you about death taxes. They can also help calculate the tax consequences of various transfers. If you own a business or other property, accountants can advise you on how to manage these properties, and whether or not you should continue the business or sell it.
Trust officers can help you choose executors or advise in setting up a trust fund. These professionals can also offer management and investment services. Trust officers can review your financial situation and help you achieve your financial goals.
The most important person on your team of professionals is your attorney. Your attorney will evaluate the advice given by the others on your team. You will make all final decisions about your estate plan with your attorney's confidential assistance. Your attorney will be able to produce all documents that are needed for an effective and legal plan.
Review Plan
Periodically, you will need to review your estate plan. Your life is constantly changing and these changes can affect your estate plan. Some examples of these changes are marriage or divorce, birth of children or grandchildren, death, financial changes, and changes in certain tax laws. Your attorney will help you review your plan and make any necessary revisions to your estate plan.
Talking about death can be difficult, but in order for a smooth transition of your assets to take place upon your death, an estate plan must be written. Having an estate plan in place before you die, will give you peace of mind, and will provide protection, whether emotionally or financially, for your family.
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