Estate planning 101

Sometimes it’s hard to know where to begin when it comes to estate planning. Don’t panic! We are here to help you better understand in order to help you and your loved ones when it comes to estate planning. Below we will help you break down the basics of what you need to do. To understand the base level of estate planning the first topic we will discuss is what estate planning is and what’s in an estate and the common mistakes to avoid.

What is estate planning and what’s in an estate?

Estate planning is basically a process in which individuals indicate how their money and other property should be managed during and after their life. The most common use of estate planning is during medical care so you know what an individual wants to be done when they can’t make clear decisions for themselves.  

What is in an estate? An estate is simply all the property individual owns either with a partner or alone. This includes bank accounts, real estate, stocks/bonds, vehicles, jewelry, or some sort of account and also includes interest or money to which the individual is later entitled such as insurance proceeds/ securities dividends.

Common mistakes to avoid:

Not having an estate plan at all

The most common mistake is not even setting up an estate plan. It is important to set yourself up that way you aren’t scrambling when that time comes and you aren’t prepared.

Not planning for disability

You never know when an unexpected long-term disability can occur. Decisions such as: who will handle the individual’s finances and who will make healthcare decisions on your behalf are extremely important.

Choosing the wrong person to handle your estate

Sometimes the person you think will make the best choices is not always the case. Maybe your spouse or children may be best suited to handle the affairs of the estate when you are gone, however, someone who isn’t related to you could be an option when you need assistance as well.

Procrastinating

For those individuals who realize an estate plan can benefit them, this realization sometimes comes too late in time. To avoid the stress of not having a proper estate plan in place, it may be ideal to meet with an estate planning lawyer to help you tie up and loose ends you may have.  

Talk to an attorney

Talking to an experienced estate planning attorney can help you make the right decisions that way you are not scrambling in the long run. Sometimes when there isn’t any plans or poor planning on what needs to be taken care of, this causes unwanted stress on the family during already tough times.