Planning for retirement and the inevitable end we all face – as morbid as it sounds – can feel a little daunting. Even if you’re not anywhere near that ripe old age where estate planning should start, it should be something that you think about.
In order to prepare your estate for the future, there are several tips to ensure all of your belongings and assets you’ve invested in, are all taken care of when the time comes. Here’s everything you need to know about preparing your estate for the future.
Take a note of all your assets
Firstly, be sure to take note of all your assets. There might be some that you’ve forgotten about or that don’t come quickly to your mind at first, which is why you’ll want to make an extensive list of everything you own, whether it has financial value or sentimental value.
Go around your home and make a note of everything you’d like to include in the will. You should also make a list of all your physical assets outside of the home. For example, if you have other property that you own, multiple cars or a motorhome perhaps.
When you note everything down, you ensure that everything has been thought about and that you’ve included it all so that nothing is up for dispute. It can be a bit of a legal battle when loved ones are trying to retrieve items or assets in general that are owned by you but weren’t included in the will.
Add your non-physical assets
Talking of assets, make sure to list all of your non-physical assets too. These are your bank accounts that have all of your cash in, as well as online investments such as crypto and NFTs.
Non-physical assets are important to factor in too because they are often of high financial value. You’ll need to liaise with the banks and any companies in which you might have stocks and shares to ensure that these are consolidated and liquidated into cash when you need them to be.
It’s worth understanding all of the legal ramifications when it comes to the sale of non-physical assets, as well as transferring them over to a loved one. Some might prove to be a little more challenging than others.
Pay off all your debts
Be sure to pay off all your debts. This is crucial when it comes to preparing your estate for the future. The last thing you want is to leave your family or loved ones with any debt that they’ll be responsible for paying off. Otherwise, it would come out of your estate through financial payment.
By paying off all your debts while you’re still alive, it leaves your loved ones with less to do and to manage themselves. It also means that you can give as much as you can do to your loved ones.
Debts are best cleared as soon as you accrue them. The quicker you can pay off your debts, the less interest you’ll be paying over time. Think about how you could consolidate your debts more effectively and bring those costs down in a shorter amount of time. By clearing debt, you’ll also lower your stress levels which hopefully helps you live a longer and healthier life!
Get in touch with an estate planning attorney
To make things easier, it’s best that you don’t do all of this on your own. Chances are, you might miss something, especially when it comes to all of the legal paperwork.
By hiring an estate planning attorney, they can do all of the hard work to get all of your estate in order. It comes at a cost but it also provides ample peace of mind that you have everything sorted should the time come sooner than you think.
Estate planning attornies have the knowledge and professional experience needed to tackle every hurdle that comes with gathering up your assets and preparing your estate. They’ll be able to answer any questions you might have regarding your estate so that you feel well-informed on the process and what to expect.
Figure out who you want the assets to go to
Who do you want your assets to go to? This is a personal question because who they go to will very much depend on who you consider deserves it, rather than just out of love or being a blood relative.
Sometimes, those who divvy up their estate might want to give some to family, friends, and even charity. Others might want to put it all to charity. It’s good to look at who you would like to receive your assets and whether this includes more than one or two people.
This might influence how much each individual gets, especially where taxes are involved. So it’s good to be mindful of this.
Make sure you have a will in place
A will is something that you’ll want to get drafted up as soon as you’re aware of your assets and what assets you want to give to who. This document is legally binding, making it easier for the individuals involved to get the assets you’ve allocated to them.
There are cases where wills have been forced or falsified, so although they are legal documents, they can be disputed. Creating a will is easy enough and doesn’t cost a lot to do.
Update your insurance
Finally, make sure you’ve got your insurance sorted. This is essential when it comes to keeping everything as it should be financially. With insurance, you protect yourself from anything that could potentially go wrong, especially when it comes to your assets.
Explore the world of insurance because there are a lot of products out there. Picking the products that are most appropriate for you might look different from everyone else’s.
Preparing your estate for the future is important so make sure you’ve dotted all your Is and crossed all your Ts. It’s crucial that everything is prepared and planned for when you inevitably cross to the other side.
