All adults should have an estate plan in place just in case something happens to you. The problem is that many young adults think that they have plenty of time to create their plans so they don't take action. While they might be right, there is still a chance that the worst could happen. Then, their loved ones are left without a plan.
When your small business is dependent upon you for daily actions and activities, you need to ensure that you have a plan in place just in case something happens to you. A business that is dependent on an owner will likely go under if that owner passes away suddenly. This can mean a tragic outcome for your company, and it might also be a tragedy for your family members if they're counting on the company for income.
Being an estate administrator means that you are responsible for paying the bills of the estate. Sometimes, the heirs think that they have to be the ones who take care of these bills; however, this isn't the case. Unscrupulous bill collectors might try to trick them into paying, but they should only tell the creditors to contact the administrator for payment.
One of the decisions you have to make when you are creating an estate plan is whether you are going to establish a trust or not. There are many different types of trusts; however, they all fall into one of two possible categories. They are established as either revocable or irrevocable.
Creating your estate plan is only part of what you need to do to ensure that your loved ones are taken care of when you pass away. Once you have the plan in order, you need to talk to your family members to let them know what your estate plan says. This gives them a chance to get clarification of anything they aren't sure about.
As much as it hurts to think about, there are times when people need to disinherit someone from their estate plan. This is often seen as an extreme measure, but it is one that can be warranted. You might have other options that enable you to pass assets to them.
When you are setting up your estate plan, you can't think about only where your assets will go. You also need to consider what you want in your final days. Some people reach a state of incapacity before they pass away. This makes it impossible for them to make decisions about their care. Instead, they are going to count on loved ones to do this for them. Having a living will in place can make this time easier for your loved ones.
When you think of an estate plan, you likely think about wills and trusts. But, there is another document that you need to prepare for your loved ones – the letter of instruction. This isn't legally binding, but it outlines important information that can benefit your family members when you die. You can leave one for everyone to read or you can leave individual letters for specific people.
Digital assets are sometimes very important to people. This can include everything from your massive collection of ebooks and movies to your social media accounts. You should ensure that you have a plan in place for these after you pass away. If you don't, they might become inaccessible and useless. You can't think only about things that you purchased. Also, take the time to plan for things like family pictures and other similar things.
One of the most important things that you have to decide as part of your estate planning, particularly if you are a single parent, is who will care for your children if you pass away. The person you choose will need to have the guardianship designation. This is a legal document that gives them the power to do anything that you would normally do for the children, including making decisions about education and health care.