Estate planning can be overwhelming.
Estate planning is a way for people to protect their assets, and ensure their wishes are carried out after their gone and that their loved ones are provided for.
But, with all the details that need to be arranged, there are often things that get overlooked. That’s why we’ve outlined four commonly missed things that an estate plan isn’t complete without.
1. Beneficiaries for Non-Probate Assets
It is common for assets owned by the deceased to go through probate and be distributed according to their will. But when it comes to non-probate assets (such as retirement accounts, or life insurance policies) they become the property of the named beneficiary.
Non-probate assets are sometimes overlooked since they are not the most obvious type of asset. However, failing to assign beneficiaries to these assets can lead to delays in the distribution process and additional tax implications for the wait.
To prevent this from happening to you, be sure to speak with an estate planner to go over all your assets and assign everything accordingly. And don’t forget to regularly update and review the designations to ensure everything will be distributed exactly as you’d like it to be.
2. Clearly Defined Wishes
Everyone’s estate plan will look different. Some people may want to stay in their homes while others might turn to retirement communities or long-term care faculties for support. Regardless of how you see yourself in your golden years, you will want to clearly state these wishes in your will and estate plan. This is especially important when it comes to long-term care. People often overlook the reality of aging which can lead to declining health and the need for frequent medical care. So, be sure to look at options like long-term care facilities and how you could afford to do it (for example with insurance, Medicaid plans, or a trust).
3. Pick an Estate Planning Team
With all the paperwork that goes into a comprehensive estate plan, it’s necessary to hire a professional to get the final documents in order. But with all the estate professionals to choose from many are unsure how to pick the right one.
The professional you use should be someone who is well-versed in estate planning and who you feel comfortable talking about your end-of-life wishes with. To begin assembling an estate team seeks out someone who specializes in estate law. This type of professional should be able to review your accounts as a way to flag any legal requirements you may need to adhere to.
Additionally, you may want to seek further advice from other professionals like an accountant or a financial advisor.
4. Debts and Liabilities
In addition to assets, debts, and liabilities are something that should be considered when estate planning. Many people overlook this area because they think they will have it paid off by the time they pass. However, this is usually not the case and it leaves many loved ones having to make sense of things like mortgages, loans, and credit card debt.
That’s why all debt should be accounted for and planned for when forming an estate plan. For example, establishing trusts can help protect assets from creditors in the future and a life insurance policy might be able to be used to cover outstanding debts but it is best to speak with a professional about your situation to see if these are an option for you.
Ultimately, estate planning can be overwhelming. But knowing how and where your assets are going can give you peace of mind. If you could use some help getting your estate plan in order, consider speaking with us at 407-328-5001.
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