We spend our entire life working hard to assemble wealth. We do this to offer comfort to our loved ones along with financial security. Ideally, every one of us has some amount of property that we call estate. Your estate constitutes everything you own, your car, your house, insurance, real estate investment, personal belongings, and furniture. Your checking and savings accounts are also a vital part of your asset.
No matter what estate you own, you should involve estate planning as a part of your financial planning. You may get in touch with a Boca Raton Estate Planning Attorney to get the right advice on how to plan your estate. Here are a few tips to keep in mind.
Get yourself a competent team
When you want to engage in estate planning, you should make it a priority to have a competent team with experienced team members. Try to collaborate with a tax professional, financial advisor, and estate planning attorney who can give you a customized and personalized plan according to your estate and needs. Each of these people will play a vital role in providing invaluable financial and legal advice to you. When you work with a team, you can maximize your beneficiaries’ possibility of inheriting the property as per your wish.
Pronounce your wishes clearly in your estate planning documents
When you are all set to make an estate plan, you should spell out your wishes regarding the dependents and assets at the time of your death. In case you don’t have an estate plan, the judge will make decisions according to the probate court on your behalf. To diminish the risk of your assets going to probate, you have to follow all the estate planning documents as a part of your strategy. Make sure you have a living will, a durable financial power of attorney, and a last will and testament. Don’t ever make the mistake of confusing the preparation of a will with an estate plan. You have to remember that a will is a part of your estate plan but an estate plan offers you the strategy to take care of your loved ones after your death.
Set the right guardianship for your dependents
The next on the estate planning checklist is choosing the right guardian who will take care of your dependent after your death. Your dependents might be minor children, aging parents, or a loved one with special needs. For them, it is important for you to name a guardian who can look after your dependents according to your estate plan. If you don’t do this, a judge might appoint the wrong person as a guardian on your behalf. However, before your name a guardian, make sure you speak to them and get their consent.
Plan for your Federal and state taxes
When we say estate taxes, we mean the federal taxes that are levied on your assets like real estate, cash, stock, and other precious belongings. Your beneficiaries are supposed to pay your state taxes after they receive the inheritance. But it might be a thing of concern if the maximum part of your estate is not in cash. This could possibly mean selling your assets off like stocks or houses so that your dependents get enough money to pay off the taxes.
Therefore, now that you are aware of the importance of estate planning, don’t miss this before you die. Don’t have the wrong notion that estate planning is only for the wealthy and rich. Regardless of how much money and property you own, it is your right to spell out your wishes about who gets what after your death.