Estate planning allows you to make a will in anticipation of your passing and have your assets arranged and managed for distribution. The process is often complicated for people who have never made their estate plans before.
As you plan your estate, you may need to consider the following things that people often forget. Here’s what you should know:
1. Discuss your plans with your executor
The executor of the estate is an agent who is responsible for handling your assets and distributing them to beneficiaries. When creating a will and naming an executor of the estate, it’s important to discuss with your executor a few key details about your estate. For example, if you have assets that your executor may need to locate, such as real estate, you may help them by informing them early. It’s also important to tell your executor where they can find your will and last testament.
2. Update your plan regularly
While you may have an estate plan made, it’s a lifelong process. You may consider updating your estate plan every three to five months to ensure that new assets are accounted for. You may also need to make changes to your estate plans if you were, for example, recently married or had a child.
3. Add contingent beneficiaries
Having a will means you can name beneficiaries who have a legal claim over your assets — but it’s always wisest to have a backup plan. If one of your beneficiaries passes away or declines their inheritance, having more than one beneficiary can help keep the estate plans in place.
4. Expect will disputes
Death brings out many emotions in people and not always the best of them. When your will is read, a beneficiary, heir or family member may not be pleased with your decisions, which can lead them to disputing your will. A will dispute can lengthen the probate process, cause large legal fees and jeopardize your last wishes. To combat will disputes, you may consider making a trust.
Estate planning doesn’t have to be a complicated process. You could reach out for legal help if you have questions about estate planning.