For many people, the idea of planning their estate is something that they need to do far in the future. As a result, many people will postpone this incredibly important task, usually under the assumption that they have plenty of time left not do it.
However, as any probate lawyer or solicitor will tell you, life is incredibly unpredictable and beginning to plan your estate when you are younger will help you to make the most informed decisions, without time being a pressing factor.
You should also ensure that any estate plan is updated regularly, especially if you have recently gotten married, had a child, or had a death in the family that will impact the beneficiaries.
So, in 2024, what are the top tips for easily planning your estate? Read on to find out.
Make a Will!
Making a will is the basis of any estate plan, and, as such, it allows you to outline how you want your assets to be distributed after you have passed away.
Without having a will, your estate may be distributed according to the law, which may not align with your preferences. So, you can seek personalized financial advice about how to divide your assets with the help of a legal professional or assign the beneficiaries yourself. If you have children under 18, you can appoint them a guardian to ensure their care and oversee the distribution of the assets when they reach legal age.
Consider Setting Up a Trust
Following on from that, it can be worth setting up a trust. This offers several benefits over a will when planning your estate, as it allows you to specify exactly when and how you want your assets (like houses, cars, and money) to be distributed. This can be exceedingly useful if you have younger children, beneficiaries who have special needs as well as those who may not be financially responsible. Trusts will help avoid the hassle of probate, which will greatly relieve your relatives. Certain trusts can also offer protection from creditors and to reduce taxes, so if this sounds like an ideal addition to your estate planning, talk to a lawyer.
Plan for Potential Incapacity
Planning your estate isn’t just about planning what you want to happen to your assets after you pass away. It is also important to plan for the event of incapacity due to sudden or prolonged illness, as well as conditions like Alzheimer’s.
You should consider hiring a fool-proof power of attorney, a person who can make financial decisions on your behalf, as well as be a healthcare proxy.
Minimize Estate Taxes
You will also likely want to minimize any tax burdens that will fall on your beneficiaries. So, one of the core parts of estate planning is to look into minimizing estate taxes. You can take advantage of setting up trusts, marital deductions, and charitable donations. Just ensure that the methods you employ are legal, or those left behind may face ramifications! Speak to an estate planner today about how to get around estate taxes legally, to save money and hassle further down the line.
