Secure Your Future: The Ultimate Estate Planning Checklist 

It is vital to ensure all your properties are always well-guarded. This is good for both individuals and, especially, business owners. You want to avoid working several years to gain these assets and lose them all in minutes to an unknown person. There is a myth that estate planning is challenging. However, estate planning doesn't have to be complicated or take time. With online tools, it's easier and cheaper than ever! One of the nicest things you can do for the people you love is to plan your estate. So, what does estate planning really mean? It's the process of choosing who will get your things and take care of your estate after you die. As part of your estate plan, consider getting many legal papers. This blog will discuss the estate planning checklist you should know about, the critical documents, why each is essential, and how to get it.

Who Needs to Plan their Estate?

There is a misconception that estate planning is only for wealthy people. However, it's actually for everyone. You need to take this more seriously to secure an excellent future for your children. You need to make a plan for who will care for them and handle their money until they are old enough to receive it. When you plan, you have more control over their future. 

The parts of your estate plan may change based on your situation. If you are young and don't have any kids, you might only make a simple will and power of attorney. When you start planning, it is different for everyone, but it's a good idea to do it before you think you'll need it. You can start planning your estate when you are 30, but earlier if you have kids.     

8 Top Estate Planning Checklists

Here is a list of things you should consider when planning your estate.

1. Find out what your family needs

For your family's sake, make an estate plan. Before anything else, you need to choose guardians to care for your pets or young children if you die. This person may also be in charge of the things your child receives. Life insurance is something else to think about. When you die, your insurance company will pay your beneficiary a death benefit. This is because you pay payments to the insurance company. Getting life insurance can give you peace of mind that your family will be taken care of financially after you die. Your family can use the money to pay off debt, replace your lost income briefly, and other things.

2. Take stock of your assets

You need to have your future goals down before taking stock of your assets. After you know what your goals are, you should make a list of all the things you have right now. These are both personal and business assets. Personal assets include things like your home, savings, and personal property. Business assets include inventory, real estate, intellectual property, and digital assets. Write down all your belongings and how much you think they are worth.

3. Policies on insurance and financial data

You should keep all of your insurance papers together. This includes your life, health, car, and home insurance papers. You should also write down your bank account information and how to get to each one. Things like bank accounts, credit cards, mortgages, loans, tax returns, pension plans, retirement benefits, and stock portfolios are all part of this. Put this information in an Excel worksheet, write it down in a notebook, and keep it with your last will. You can leverage business consultants to ensure it is done as you please. 

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4. Make a will

A will is a legal document that spells out how you want your property to be distributed after you die. This includes your personal and work assets if you are a sole trader. You should also name an agent in your will to take care of your estate and give your assets to those you want them to go to. You will have to choose who should be the leaders of your business if you run one.

5. Keeps documents of your assets and estate

Keep an up-to-date list of all your valuables and debts, along with where they are located. Ensure you update this list once a year and give it to your spouse and the person you've chosen as your executor. Also, make a file with all the proof that this list of assets and debts is correct. You should think about all of your assets, such as your home, land, cars, keepsakes, jewellery, artwork, personal items, bank accounts, investments in stocks, bonds, and mutual funds, life insurance, retirement plans, health savings accounts, owning a business, and so on.

You should also think about digital assets, a constantly changing field. List your digital assets, like your email addresses, social media accounts, websites, etc. Access details, such as a web address, user name, and password, should be on the list. Additionally, write down any recurring payments that go with these accounts so that someone in charge can ensure they are either paid or cancelled.

6. Have an advance healthcare directive 

If you become mentally or physically unable and have not named someone to make medical care decisions for you, the court will do it. A health care directive lets you choose who makes health care decisions for you, so you don't have to trust someone else. You can name one or more people (through a health care power of attorney) to make decisions about your medical care if you become too sick or injured to do so yourself. 

You can include instructions and opinions for your treatment and care in an advance health care directive. This will help the people making decisions about your care and treatment. For instance, the advance directive spells out what kinds of medical care you want to receive. You can also say what you want to happen with your body, organ transfers, and other things. Some courts can choose someone to make medical care decisions for you if you don't name a healthcare agent. Otherwise, a doctor will decide what to do in an emergency.

7. Review and change your plan often

Getting your will ready is a process that takes time. You must review and update your plan regularly to ensure it still fits your needs and considers any changes in your business or personal life. This could include changes in tax rules, who owns a business, or how a family works. If you want to protect your business even in court cases, hire a legal lawyer to help you and ensure you do it right.

8. Funeral instructions  

This tells your family and friends how and if you want to be buried. You can also write down other things you'd like, like readings at your funeral or memory gifts you'd like given to animals in need. Funeral instructions aren't legal papers like many other things on this list. You don't need to fill out and have notarised a legal form. In some apps where you can make your will, there is an extra space to write any funeral directions you want.

What kinds of papers should be in an estate plan?

If you want the best estate plan, make it just for you by a professional who can point out important details most people miss. With the help of many important estate planning papers, you can protect your assets and your family's financial future. Here are the most important documents you need to make an estate plan:

1. A Will

A will name the person or people who will get your property, funds, stocks, bonds, and other assets after you die. It will also let you choose a guardian for your children if requested. You can also choose who gets your pets—the basis of every good estate plan.

2. Trust

There is a formal document called a trust that holds your assets and then gives them to the people you choose as your beneficiaries when you die. Having a trust helps your heirs escape probate court, which takes a lot of time and money.

3. Durable Power of Attorney

If you cannot handle your financial or legal matters, a lasting power of attorney lets someone you trust take care of them. With this deal, someone can take care of your money, pay your bills, and make important decisions if you can't. It also makes sure that your business is handled well.

4. Financial Power of Attorney

This paper, also known as a "durable power of attorney," gives someone you trust the power to handle your money and property if you cannot do so yourself.

5. A letter of intent

A letter of intent is an extra document that tells your family and friends about your wishes, funeral arrangements, or specific directions. Despite not being legally binding, it can give you useful information and help your family understand and carry out your plans.

6. Healthcare Power of Attorney

You can choose someone you trust to make medical choices if you cannot do so yourself with a healthcare power of attorney. This agreement protects your healthcare choices and helps your chosen representative know what to do in critical medical situations.

7. Beneficiaries Designations

You should change the names of the people who will receive your retirement accounts, life insurance policies, and other valuables. It is important to ensure that your beneficiary choices are up-to-date and in line with your estate plan so that your assets go to the right people.

What to do after getting your papers

When you have your estate planning papers, keep them somewhere safe and easy to get to. Let your family and friends know where your papers are. Let people who need them have a copy of the documents. One person who should get a copy of your advance healthcare order is your healthcare agent. 

Your life constantly changes, so your will must change over time. If you have a big event, like getting married or buying a house, you should review your estate plan every three to five years. For some people, there are better options than online estate planning. You should talk to a good estate lawyer if you have questions about your estate or position.

Conclusion

Studies have shown more than 50% of people die without having a will. We made this estate planning checklist to ensure individuals know what needs to be done at a particular time. There's more to estate planning than just figuring out how to split up your stuff after you die. It's also about ensuring that your family and other beneficiaries are taken care of and can access your funds if you become temporarily or permanently unable to do so. Even though there is a law in place for someone who dies without estate planning. It is however great to plan towards one’s future.Making a will is a good start but not the end. Now is the time to start planning for the future, and The Kalculators is the best company to help you with your Estate Planning. 

Enjoy a free consultation and quote by contacting us today!

Frequently asked questions 

What does estate planning mean?

Estate planning is organising and managing your affairs so that your plans are carried out, and your assets are given to the people you want them to when you die or become unable to do so. It includes making legal documents, like wills, trusts, and powers of attorney, that say how your assets will be split and name people to make decisions for you.

Why do you need estate planning?

Estate planning is essential to individuals who want their family members to be well cared for after their demise. Here are some of its benefits.

• Making an estate plan gives you peace of mind because your wishes will be fulfilled, and your family will be cared for.
• It ensures that your assets are split up how you want them to be so there are no arguments or confusion in your family.
• Planning your estate also helps you choose guardians for your children and ensures that your things are handled in a way that fits your values.
• It gives your children the future you envisage for them from the beginning. 

When should you start estate planning?

You can start planning your will at any time. You can always make plans for the future of yourself and your family. You will have more freedom to make choices and decisions if you start sooner. You should have a complete estate plan by age 40 or when you have important things to protect.

What papers do you need for your will?

The following papers are usually part of a complete estate plan:

• Last will: This document defines how you want your property divided after you die and names an agent to execute your instructions.
• Advance Directive: This paper tells people how to care for their medical needs and comfort them if they cannot speak for themselves.
• Durable Power of Attorney: This paper lets someone you trust make choices for you if you cannot do so.
• Trusts: You can give assets to people through trusts, which can help you avoid probate and save money on taxes.

How much does it cost to plan your estate?

The price of planning your estate can change based on how complicated your case is and the services you pick. We suggest you talk to an experienced estate planning lawyer who can advise you and help you make an estate plan that meets all your needs. Many lawyers who help people plan estates offer free initial meetings. Therefore, find out more about their services and get an idea of how much they cost.