It’s crucial to have a will or estate plan, no matter your age. These documents go beyond simply passing assets at death, they can also be invaluable during difficult times. Without them, your family could face conflicts and extra expenses after your passing. Including a “Medical Directive” in these plans provides an outline of your wishes in the event of a debilitating injury or illness.
Learn about the importance of wills and estate plans, as well as how to create them with Trajan Wealth. We’ll provide you with valuable insights and information to help you make informed decisions about protecting your assets and ensuring your wishes are carried out. Understanding the significance of these documents can give you peace of mind and help your loved ones during challenging times.
Steps for Creating a Will or Estate Plan
Crafting your will or estate plan involves several important steps. Follow these guidelines to ensure that your wishes are carried out and your assets are protected:
- Take Inventory: Begin by making a detailed list of all your assets, including real estate, investments, bank accounts, retirement accounts, and personal belongings.
- Choose Your Beneficiaries: Determine who you want to inherit your assets. You can designate beneficiaries for specific assets or allocate percentages of your estate to different individuals or organizations.
- Select an Executor: Choose a responsible and trustworthy person to carry out the terms of your will. This individual will be responsible for managing your estate after your passing.
- Consider Guardianship: If you have minor children, decide on guardians who will take care of them in the event of your passing.
- Plan for Healthcare: Include a Medical Directive or Healthcare Power of Attorney in your estate plan to specify your medical treatment preferences in case you are unable to communicate.
- Consult with Professionals: Seek guidance from an attorney who specializes in estate planning to ensure that your will and estate plan align with your state’s laws, and meet your specific needs.
- Keep Your Plan Updated: Review and update your estate plan regularly. Especially after major life events such as marriage, divorce, the birth of a child, or significant changes in your financial situation.
Create Your Estate Plan or Will Carefully
There’s just as much planning required for living as there is for our eventual passing. So there’s no reason to wait to get started. We recommend working with an attorney who specializes in this specific type of law. As you age, have children, or acquire more assets, your situation changes and so should your estate plan. Here are some of the most common mistakes to avoid in estate plans and wills:
- Naming Beneficiaries and Contingent Beneficiaries. Remember to update beneficiary information periodically to ensure your estate plan is current. Common mistakes include misspelling names and using incorrect dates of birth. Naming a child as a beneficiary requires legal due diligence as minors can’t inherit assets directly.
- Naming Specific Investments. As people age, it’s important to update their will or estate plan to remove any investments they no longer own. Otherwise, leaving specific assets to individuals who are no longer part of the estate can lead to lengthy probate or require the asset to be equalized through a monetary settlement.
- Naming Beneficiaries of Your Financial Accounts or Life Insurance Policies. Not naming beneficiaries can cause issues later. It’s best to have all accounts or policies named with an individual or the estate to avoid conflicts. It’s strongly recommended to have a will or estate plan drafted by a legal professional as part of your financial planning.
Let Us Help Plan Your Estate or Will
Choose Trajan Wealth to stay updated on any changes to beneficiaries, contingent beneficiaries, investment accounts, and more. We can review your estate plan, will, and other relevant legal documents related to your investments. Our team is here to provide any necessary financial records requested by your legal professional for creating or updating your estate plans and wills.
