Having an estate plan can protect your future and provide ongoing support after your death to your loved ones. Spending time working with your estate planning attorney to personalize your strategy can make it more applicable to your life.
Taking a close look at critical aspects of your life can help you determine which strategies will optimize the value of your plan.
Take inventory of your assets
The assets included in your estate plan could vary from financial accounts to real estate holdings. You may also have personal belongings that hold sentimental value to your family. Make a thorough list of the assets you have, including life insurance, retirement plans, savings bonds, etc. Determine who you want to inherit everything. Keep in mind that you will most likely add assets to your plan or modify them throughout the remainder of your life as people come into your life or leave it.
Consider distribution strategies
Asset distribution is something you can do in many ways, during your lifetime or after your death. Some assets will pass by joint ownership. Others by beneficiary designations, such as with life insurance or retirement accounts. According to CNBC, many Americans cite the lack of worth of their assets as a reason to defer estate planning. However, a plan of any kind can give your family the gift of carrying on a legacy and knowing that you considered their futures. If articulated correctly, your plan can facilitate the growth and continuation of wealth for your loved ones. You may want to leave assets in trust for minor or special needs children. You may want to leave specific bequests for a sibling or to take care of a pet or for your favorite charity.
An estate plan will mean more and function better when you make it your own through close work with your estate planning counsel. As your life changes and significant events happen, you will want to update your plan to make sure it continues to meet your expectations. Your family will appreciate the time you take to protect them and your legacy.