How to Properly Create Your Estate Plan
An estate plan consists of wills and trusts as its basic elements. The majority of the people in Utah die without creating an estate plan, putting their loved ones in a stressful situation. Regardless of how many assets one owns, an estate plan is crucial to carry out one’s wishes and in the simplest and most affordable way possible.
The first and the foremost reason that makes estate planning documents so important is the peace of mind for the loved ones. Once you die, you are not there to help your family and loved ones come out of the stressful situation. Therefore, you must create a plan for the time when you will no longer be there to support your loved ones.
Because an estate plan is so important, it can sometimes feel like an overwhelming task. This is why we’ve written down a list of dos and don’ts that will make your plan perfect and efficient, saving your loved ones from the trouble!
The Do’s of an Estate Plan
When starting an estate plan, you need to consider these factors.
Make a Will
A will bestows upon a person the legal means to carry out the decedent’s wishes and to distribute their assets. A will is the most basic element of an estate plan and a must for every individual. Not only does a will help in disclosing your wishes, but it even lets you name the guardians for your minor or incapacitated children. It is a way to eliminate family conflicts and even prevent intestate succession (the government decides where your property goes).
Make a Trust
Along with a will, it is recommended that anyone that is a homeowner should also establish a trust.. It helps in saving people from probate and the costs and burdens of going to court. It is a great compliment to a will as the trust covers real estate and the will covers everything else.
Establish a Durable Power of Attorney
Establishing a power of attorney will help you ensure that someone can take care of you financially by all making all your payments and taxes if you ever become mentally incapacitated.
Fill out a Health Care Directive
A health care directive enables you to choose someone to make health care decisions for you if you are in a coma or otherwise incapable of making decisions for yourself.
The Don’ts of an Estate Plan
When creating an estate plan, there are several factors that you need to avoid at all times.
Do Not Keep the Attorney Out of the Loop
Your estate planning attorney needs to stay in the loop at all times. No matter what decision you are making, your attorney must have complete knowledge about it. It is best to discuss with an attorney whenever you are planning to buy or sell a property or transferring it. A wrong decision might trigger tax and legal problems.
Do Not Assume that your Bank Keeps Track of Your Real Estate Documents
Keeping track of all your real estate paperwork is your responsibility. Assuming that your bank is keeping track of all your real estate documents is a mistake. A bank has other high-priority matters to attend to; therefore, it is you who is responsible for safely keeping all important legal documents.
Do Not Forget About the Backup Plan
Life is full of unpredictable circumstances, and that is why having a backup plan is very important. There is a chance that you may outlive your beneficiaries. Have a document that clearly mentions the plan B if your beneficiaries were to die. Not doing so will bring the matter under the court, and what the court decides might not be in your favor!
These are the dos and don’ts of establishing an estate plan. If you want your estate plan to be efficient, make sure you follow the list!