Any person who is a legal owner of a property is urged to create an estate plan. Its purpose is to distribute the deceased person’s assets to the stated beneficiaries after their death.
A well-formulated estate plan determines who will inherit a person’s property, while the lack of one can lead to a direct estate distribution. According to the state laws, a property owner can create his own will with designated objectives to determine who gets what and how to move forward with the plan.
Creating an estate plan is a complex process that requires an estate planning attorney’s thorough assistance to ensure your will complies with the laws.
Here are some of the key steps to creating a good estate plan.
Hire a Qualified Estate Planning Attorney
The first step to creating an estate plan is hiring an experienced lawyer who can help you with this essential life decision involving your family, acquaintances, and finances. Since this plan consists of sensitive information including your taxable and non-taxable obligations, there’s no room for error.
Hiring an estate planning attorney can help you create a well-constructed plan. In fact, many qualified lawyers save you the hassle of undergoing detailed, complex, and time-consuming tasks by preparing your will according to your wishes.
Furthermore, it’s critical to appoint a lawyer who can professionally navigate your family situation and guide you through the essential steps to distributing your financial assets equally according to the specific state laws.
Calculate Your Net Worth
The next step is to gather all your assets and liabilities and calculate your net worth. Create a list of all your possessions and debts payable. Your assets may include investments, personal property such as home, art, furniture, bank accounts, insurance policies, IRA accounts, and cash value. Liabilities usually comprise personal loans, mortgages, credit card balances and student loans.
Subtract your liabilities from total assets to calculate your net worth.
Sign a Will
Once you have a clear idea of what you own, begin writing a will to ensure your assets are distributed among the chosen heirs and inheritors. Seek assistance from your lawyer to select an executor for your will, who can pay your debts and distribute the remaining assets to your loved ones.
It’s essential to note that all your assets won’t be passed on to your natural heirs because many properties don’t require families to undergo probate. For example, your spouse will inherit a joint property due to the right of survivorship.
Therefore, remember to fill up the beneficiary form in a bank or brokerage firm to transfer payable-on-death savings, cash, and securities to specific family members or beneficiaries.
Remember to update your estate plan according to your family’s circumstances every year, especially during major events like birth, marriage, death, or divorce. Reach out to the qualified estate planning lawyers at Kalicki Collier, who can help you achieve an estate plan that reflects yours and your beneficiaries’ financial goals. Connect with us today!