subject: Get Started On That Estate Plan Now: Here's How [print this page] Get Started On That Estate Plan Now: Here's How
Estate planning is one of those things we all know we should do, but most of us just don't seem to get around to. Literally. According to a 2007 Harris Interactive poll, 55% of American adults don't have a Will. However, putting together a plan to protect you and your loved ones in the event of your disability or death doesn't have to be difficult or intimidating. Here are three steps you can follow to get started:
1. Figure out What You Own. It may sound obvious, but the first step in planning your estate is sitting down and mapping out your assets and liabilities, as well as the way in which each asset is titled. Before you can decide what should go to whom, you need to know what you own and how you own it. Plus, this information will help your attorney assess which estate planning tools should be used to distribute your property in the way that best meets your goals.
2. Decide Who Should Get What, and When. You'll want to have an idea about which specific items of property should go to which of your loved ones, and you'll need an overall plan for how the bulk of your assets should be divided. While your loved ones can receive your assets immediately upon your death, this is not required. Another option is to leave property in trust, either for a specified period of time or for the life of a particular beneficiary. This works well if you are leaving assets for minor children or for a loved one who is not experienced or responsible with money.
3. Choose Trusted Representatives. You'll need to choose trusted individuals to ensure that your wishes are carried out in the event of your incapacity or death. These will include an agent to handle your finances under a Durable Financial Power of Attorney, a healthcare agent to make medical decisions for you pursuant to a Durable Power of Attorney for Healthcare, an Executor and/or Trustee to administer your estate, and a Guardian to care for any minor children you leave behind. Your estate planning attorney will explain each of these roles and can help you choose the appropriate person to serve in each position.
These are the three steps that are necessary to get the ball rolling. Starting with this basic information, your estate planning attorney can work with you to answer any questions you may have and to put in place a comprehensive plan tailored to meet the needs of you and your family. Cheryl David is a leading provider of expert estate planning guidance in Greensboro, NC. For more information on estate plan and other estate planning services, visit our website.
