4 Simple Steps to Plan Your Estate

By: Kyle Rutten BrestelBucar.com

Talk to any Estate Planning attorney and they will tell you, “plan your estate or the state will plan it for you.” Having the state handle this process has several downsides that are very much worth being aware of. First, this will gum up the process of disbursing your estate. This process is known as Probate Court and can be extremely slow, stressful, and expensive if not adequately planned for. Second, the disbursement of your estate is likely to be far from ideal if directed by the state and often leads to a financial struggle for your heirs, in-fighting within the family, and other difficulties.

Step 1: Execute a Last Will

The first step to planning your estate is to execute a last will. In this document, you will assign a person to oversee the probate process. You will also leave explicit directions on how your estate, debts, and guardianships will be handled. This is probably the most critical aspect of an estate plan and should be priority 1 in the process. A last will can ensure that your children are properly cared for, your funeral costs are covered without burdening your family, and your debts are managed in a way that is fair and avoids arguments within your family.

Step 2: Consider Implementing a Living Trust

A living trust is similar in many ways to a last will. However, these documents come with some additional upside, particularly for business owners and high net-worth individuals. It’s best to chat with an attorney if you suspect a living trust would be beneficial for your situation. Estates managed by a living trust can even avoid probate altogether, making for a quick and smooth process that takes many burdens off of the shoulders of a grieving family.

Step 3: Get a Life Insurance Policy

Life insurance is a fantastic way to be a massive help to your family in the event the worst occurs. Life insurance can assist with estate taxes, outstanding debts, and even provide an income for your spouse in the event of your death. This is a process that is absolutely worth the headache so don’t delay.

Ideally, you want to take the time to do due diligence and research the best life insurance policy for your specific needs. It can be tricky to figure out where to begin, especially if you are not familiar with life insurance policies. Experts recommend narrowing down your result by term lengths, based on your age or health. For instance, if you are looking for specific term lengths, reading Forbes’ Primerica reviews can help you figure out more about the different options available. As a rule of thumb, Forbes advisor is a fantastic source of information if you are just at the start of your search. 

Step 4: Name a Beneficiary Wherever Possible

On just about any type of financial account including bank accounts, investment accounts, and retirement plans, you can name a beneficiary. The beneficiary is typically the individual who takes control of the account in the event of your passing. Naming a beneficiary on these accounts is the quickest way to get funds where they need to go. Not only that, but it allows finances to avoid getting tied up in probate and causing undue stress for your family.

Don’t Put Off an Estate Plan

Planning for the end of our lives is one of those things we’d all prefer to avoid. However, it is too often the case that families are left in a lurch because this wasn’t considered soon enough. By starting with the four simple steps above you will be well on your way to having much more protection in place for your loved ones.

In most cases, speaking to an estate planning attorney is the best place to start. An attorney will walk through your specific circumstances and draw up a plan that covers all of your bases.