Estate planning is the process of making sure your financial and legal affairs are in order in the event of your death or incapacitation. It involves setting up a plan for how you want your assets distributed after you are gone, as well as outlining plans for any dependents who may be financially dependent on you. Estate planning can be a difficult, emotional task, but it is an important step in protecting yourself, your family, and your assets.
Creating an Estate Plan
The first step in estate planning is to create a will. A will outlines how you want your assets distributed upon death. This includes not only tangible items such as money and property but also intangible items such as stocks and bonds, insurance policies, digital assets (such as websites or online accounts), and other valuable personal possessions. The main purpose of creating a will is to ensure that all of your wishes are carried out upon death.
You should also consider creating power of attorney documents to designate someone else to make decisions on behalf of you if you become incapacitated or otherwise unable to do so yourself. These documents give someone else the ability to manage financial matters and make medical decisions for you if needed. Power of attorney documents can be set up either permanently or temporarily depending on individual needs.
Importance of Estate Planning
Estate planning can help protect both yourself and your family from potential legal issues down the road. It ensures that all necessary details are taken care of before anything happens so that there’s no confusion later on if something were to occur unexpectedly—such as a death or an incapacitation. It also helps alleviate some of the financial burden associated with death by properly distributing assets according to one’s wishes rather than leaving it up to chance or state law requirements. Having an estate plan in place will also help reduce taxes owed by beneficiaries after a person has passed away because any gifts given during life can be deducted from the final tax bill when filing the estate taxes due following a person’s death.
Estate planning is an important step for anyone who wants their wishes respected when they are no longer able to take care of their own affairs themselves either due to incapacity or death. There are several steps involved when it comes to proper estate planning including creating wills, power-of-attorney documents, trusts, and other necessary documents needed before passing away or becoming incapacitated . Everyone should take the time now—while still healthy and able—to create an estate plan so that their loved ones can have peace-of-mind knowing that everything was taken care of ahead of time without having any surprises come up later down the line when it comes time for them settle one’s estate after they have passed away or become incapacitated.. Doing so now will not only provide comfort but protection down the line as well.
For more information about estate planning, or if you would like to consult about estate planning, contact Curington Law, LLC at 312 803-1755 or online.