Death is never an easy topic to discuss. But if you’re not prepared for the consequences, it’ll be that much more challenging. That’s why it’s important that you formulate an estate plan, an organized means of eliminating uncertainties and maximizing the value of the estate.
Here is a Top 10 list of things you need to know before preparing your own estate plan.
1. No matter your net worth, you are advised to have a basic estate plan in place. Such a plan ensures that your family and financial goals are met after you die.
2. An estate plan includes a will, assignment of power of attorney and a living will or healthcare proxy (medical power of attorney).
3. Take inventory of your assets, including investments, retirement savings, insurance policies and real estate or business interests. Then determine whom you want to inherit your assets to, whom you want handling your financial affairs if you’re ever incapacitated and whom you want making medical decisions should you be unable to do so for yourself.
4. Put together a will. A will spells out how your assets are distributed and who is responsible for your children, should they be minors. Not having a well provides additional stress to an already stressful situation. Often times, family members fight over who gets what.
5. Formulate a trust, regardless of your net worth. Trusts dictate how and when your assets will be distributed upon your death.
6. Discuss your estate plans with your heirs to prevent disputes or confusion.
7. Stay on top of the federal laws. For example, the federal estate tax exemption changes regularly.
8. You may leave all of your assets to your spouse, but you won’t be able to use your estate tax exemption. Therefore, your children are likely to pay more in estate taxes if your spouse leaves them the money when he or she dies.
9. Give gifts tax-free and reduce your estate.
10. Donate to charity. If you donate to a charitable gift fund or community foundation, your investment grows tax-free and you can select the charities to which contributions are given both before and after you die.
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Grover & Verlinden are committed to providing friendly and efficient service in evaluating each client’s individual planning needs, ensuring that clients understand what options are available, and how to use them. They work with clients to develop a plan that will best meet their needs and help them take the steps necessary to implement their plan. They strive to maintain the type of working rapport with their clients that encourages them to return for services in the event that their life planning needs change. They provide straightforward guidance to assist you in making decisions about these matters for yourself. The offices of Grover & Verlinden are conveniently located in downtown Marquette with parking available.
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