There could be nothing more tragic than having your life savings dissipate and your family being left unprotected. A carefully conceived plan with precision can be one of the most important gift you give to your family, your loved ones and your own self. Having an estate plan will provide you a piece of mind and give your family a clear direction to your wishes. So, it is imperative that you formalize a plan for your estate and make sure that the right parties are inheriting your assets.
Notwithstanding the size of your estate, having an estate plan is a necessity. Let me introduce you to smart tips that will be helpful in the whole process, even if you already have a plan in place.
Create a Will
The very first step in this direction is to prepare a will. It will be difficult to formulate a plan without drafting a will or a trust. For this part you would need to catalog your assets and having an estate litigation attorney will surely be handy in this case. It would help you in avoiding any additional costs or delays that may come upon, if you die without a will. If you fail to draw a will, all your fictional and nonfictional assets will be determined by the law that governs your domicile. So, make it your priority and have it drafted.
Choose an Executor and Power of Attorney
An Executor will be basically responsible for ensuring that all the administration of your estate is done in a suitable and timely manner. A power attorney will allow you to choose an individual who will act on your behalf, while you are still alive. This also applicable if you lose your mental capacity in future.
Minimization of Taxes
You may even be able to minimize estate and income taxes which you have anticipated that your beneficiaries will owe. A great way of doing this is by leaving your taxable assets to the charities, if they come into your list of beneficiaries. And the tax-free assets, after tax savings and life insurances among others can be left for your other beneficiaries. Another way of reducing your taxable estate is gifting amounts to your beneficiaries as gift is non-taxable, while you are alive.
Select a Super Fund
You also have to make sure that you choose a super fund that can make anti-detriment payments which would give your dependents a huge death benefit, when your super is paid lump sum. This super fund should also be able to pay pensions. For your beneficiaries, death benefits paid as a pension could be a tax-effective option.
Estate planning is not a simple task but a complex gamut of several rules, regulations and laws. These laws are also not static rather keeps on changing on a frequent basis. To have a smooth sailing, hire an estate litigation attorney who will provide you with all the necessary information and help you at every step of the whole process.
Although each Estate Plan is unique, these tips for an estate will be able to help you out in developing a customized estate plan that will protect your family, bring a piece of mind, and safeguard your assets.