Estate planning is something that everyone should do, regardless of their age or wealth. It is important to have a plan in place in case something happens to you and you are no longer able to make decisions for yourself. The question is, what goes into a good estate plan?
Choose someone to be your executor
This person will be responsible for carrying out your wishes after you die. This includes making sure that your debts are paid and that your assets get distributed according to your wishes. You should choose someone who’s responsible and organized. They should be able to follow your instructions and handle the responsibility expertly.
Make a will
This estate planning document will outline your wishes for what should happen to your assets after you die. Without a will, the state will decide how to distribute your belongings and this may not be in line with what you would have wanted. In your will, you should include who you want to receive your assets, as well as any conditions that must be met in order for them to inherit.
You should also appoint a guardian for any minor children in your will. This is the person who will care for them if something happens to you and their other parent.
Create a living trust
A living trust is a legal document that outlines how you want your assets to get managed if you become incapacitated. This can be due to an illness or injury. The trustee, who is someone you appoint, will have the legal authority to manage your affairs according to your wishes.
Creating a good estate plan does not have to be difficult. By taking the time to do it now, you can ensure that your wishes will get carried out and that your loved ones are taken care of if something happens to you.
