A family is the guiding spirit of a common man’s life. Everything he does throughout his life, he does for the good and happiness of his family; but death is also a bitter and inevitable fact of life that not only ends human life, but also the means by which his family survives. Therefore, having a proper end-of-life plan at the right time in his life is of paramount importance. There are so many areas of life that can affect an estate and the actions that the executor or agents must handle, including:
- Who will take care of pets or livestock?
- What kind of social media accounts should be closed?
- Are all your biographical documents in one place that your loved ones can locate?
- If you are a veteran, have you instructed your loved ones on how to arrange a military funeral?
- Will your executor know who to contact or where to find your past tax returns?
- Will your assets go through probate or have you taken steps to reduce the impact of probate proceedings?
- Will your executor know how or who to contact at your past and/or current employment for benefits owed to your estate?
- Do any of your accounts need to be updated with new beneficiaries?
- Are all your passwords in one central location and up to date?
- Will your agent or executor know where important keys and combinations are located?
Writing a will is often considered estate planning, but in fact, it is much more than that. The plan includes things ranging from life insurance, real estate deeds, death payment and death transfer documentation, trusts, and special instructions related to personal belongings and debts. An estate plan can help you take note of your inventory and finances, which can help estimate your family’s current and future needs. The estate plan would identify who you want to manage your estate (executor), who would care for the children and your assets (trust beneficiary), how to legally close online and offline accounts, and how to avoid lengthy probate proceedings.
If a person does not have an end-of-life plan, the consequences for their loved ones can be serious, since their future would depend on the court. There is a high probability that no trusted beneficiaries are assigned to manage the estate. The same goes for the choice of caregivers, if the person becomes incapacitated in some way, their finances and care could be handled by people who do not have their best interests in mind. An estate plan gives you the power to decide who will inherit your hard-earned assets and who will take care of you if you can no longer take care of yourself.
Meeting with a financial advisor or estate planner provides a “reality check” of assessed needs so that a comprehensive plan can be created. You will be guided through the various topics of an estate plan so that you can fully identify your assets and how best to assign beneficiaries and instructions expressing your wishes. Having the right estate plan today is a wise decision and would benefit both you and your loved ones.