Having an estate plan is essential for everyone. It doesn’t matter if you are young or don’t have many assets because it is a needed step towards securing your assets and passing them to your heirs. Unfortunately, many people ignore or delay estate planning because they think they don’t need it. We all know that death can come for anybody at any age, but what about our family? We wouldn’t want to risk their security, their happiness, and most importantly, their inheritance in order by not planning and creating an estate plan.
Estate planning can come with many benefits for your family even after you’re gone. Also, good planning for the future will always be a positive step for you and everyone close to you. So here, in this blog, we aren’t just going to talk about estate planning, but we will guide you with the estate planning checklist.
Estate Planning Checklist
Will
A will is quite helpful if you want to express your final wishes to settle your estate, savings, and everything which belongs to you. In the choice, you can also appoint a legal guardian or a person responsible for taking care of your minor children if you are no longer around. You must sign your will in front of two witnesses, and it should be 100% your own conscious decision.
Revocable Trust
Can hold all your assets for the benefit of whom you wish. Unlike a will, you will be transferring or retitling your assets into the name of the trust during your lifetime. This document will allow your loved ones to avoid probate and provide asset protection for you and your beneficiaries.
Advance Care Directive
This is just another name for the “Living Will.” It can be used to specify the medical treatment course when you aren’t able to articulate choices for yourself. You must know that state laws vary on the facility of advance care directives.
Health Care Proxy
It is another health-related facility in which you designate someone else to make choices about your medical care in case of an emergency or when you aren’t able to take the decision. You must know that state laws vary on the facility of Health Care Proxy too.
Statements of Intent
It allows you to express your wishes, philosophies, preferences, expectations, desires, and essential advice to your trustees or dependents. This will help you and your family members craft a vision with your estate.
Important Estate Roles
Before planning or during the planning of an estate, you must make some practical decisions, and they aren’t going to be an easy task. For example, you have to pick an executor, a trustee, and a guardian if you have minor children.
An Executor
They are responsible for carrying out all the provisions of your will accordingly as you granted. The executor should be someone you trust, like a child, close relative, friend, or professional like a lawyer or accountant.
A Trustee
Someone who manages the trust you created and strictly enforced your faith’s rules without breaking anything. It is your choice, and you should consider carefully who you are going to make your trustee. You can pick a known person who knows your circumstances well or choose a professional institution to handle all that.
A Guardian
You must know that a guardian is an important person who assumes your legal responsibilities for your minor or disabled children.
You must know that you’ve spent a lifetime building your estate, so you should be careful with it. Every step you are going to take should be taken under the consultation of an experienced lawyer. We highly recommend estate planning for all, regardless of your wealth or age. It is never too early to start planning, as a good estate plan created by a reasonable attorney will provide flexibility and grow alongside you.
After getting married, one of the most important legal decisions a couple makes is estate planning. Estate planning ensures that after you are gone, your spouse and your children are well taken care of. Thus, this article pertains to the various elements that a married couple must consider during estate planning. Proper and well-documented planning is the best way to distribute your assets among your loved ones.
What Is Estate Planning?
Estate planning is a legal procedure through which you can distribute all your belongings and assets among family members and friends who you intend to. Since it has to be done legally, care must be taken while distributing the assets to avoid a mess later.
Why Is Estate Planning Necessary?
Here are some of the common and essential reasons any married couple should opt for estate planning.
- It helps you give control of all of your assets after your death.
- It ensures your family’s financial stability even when you are not around.
- You can have your medical guardian just in case you are not in a position to make fair decisions.
- It makes the transition of property and assets to the beneficiaries and spouse pretty easy.
- Through estate planning, you can choose the person to administer your assets. This might not happen if the decision lies in the hands of the court.
- The burden of funeral planning can also be reduced through estate planning.
Estate Planning for Married Couples
There are so many reasons why married couples must consider estate planning. These are some significant reasons and tips for married couples regarding estate planning.
Tax Deduction
It is one of the most popular reasons married couples opt for estate planning. If you give all of your estates to your spouse, you can lessen the tax burden. This is called the marital deduction. The estate would naturally take a marital deduction for the amount of property your spouse inherits. But the thing is, there is no limit to the marital deduction. So if you want your spouse to take care of all your assets after you are no more, this is one of the best ways.
Child Guardianship
If you and your spouse have minor children, then it is necessary to mention the guardian of your children in the will. This is necessary as it will ensure the child’s custody after your death. In the case of the end of both the parents then, the child is given to a third guardian. Mostly the guardianship is given to the better half or a very close family member.
Remember, if you have no children or children who are not minors, then legal guardianship is not required in estate planning.
This same rule applies in the case of pets as well. You can appoint any guardian to your pet if something happens to you. You can legally give the authority to the appointed guardian through estate planning.
This shows that the estate planning field is very dynamic, and you can use it to legally distribute all your belongings to specific people of your choosing.
Marital Property Distribution
Marital property pertains to the property you have acquired together as a married couple. It can be a joined account or a property, or a car. Generally, if one of the partners dies, the property goes to the other. But it would help if you discussed with your spouse who to give it to if you both meet with an accidental death. You can provide the authority of your marital property to your children or a close relative who you trust the most. It is necessary to always pass on your assets to people who would take good care of them.
Health Care Planning
This is a must for people who are thinking of estate planning. Through health care planning, you can give authority to your spouse to make medical decisions for yourself just in case you can’t do it yourself.
Conclusion!
All married couples need to have proper estate planning, and we hope that this article will help you in this respect.