Would it surprise you to know that only approximately 33% of adults in the US have estate plans? In addition, 60% of those without estate plans have not and do not have plans to start the process.
However, a strong estate plan helps to ensure your asset transfer after your death occurs in accordance with your personal desires. Therefore, these are some things you should include in your estate plan.
Powers of attorney
Your powers of attorney act for you when you cannot act for yourself, e.g., you become incapacitated. Choose individuals to make your financial, healthcare and legal decisions in these circumstances. However, make sure these individuals fully understand your desires and that you can trust them to carry them out.
Trust
You can transfer all your major assets, such as real estate, valuable artwork, jewelry, automobiles and financial assets into a trust. The trust becomes the “owner,” but you can use, sell, etc. the assets. Upon your death, the trustee distributes the assets to those you listed in the trust documents.
Financial accounts
Your pension, life insurances and financial accounts allow you to list a beneficiary. Contact each company and designate beneficiaries. These accounts will pass automatically to your heirs.
Will
You also need to designate any asset that you did not move into your trust. For example, you may have heirlooms that are not worth a lot of money but may hold sentimental value to some of your heirs. Designate them in your will.
Guardianship
If you have minor children, list guardians who will willingly care for and raise your children for you. Choose individuals with the same values and beliefs.
Do not forget to review your estate plan yearly and update it after major life changes.