While working, people often focus on saving for retirement as their primary financial goal. But you can always take this a step further by creating an estate plan. This allows you to control your assets and provide for your loved ones even after death. Without an estate plan, you expose your assets to unnecessary taxes, family drama, and various legal complications. This article highlights the three main priorities your estate plan should address.
Asset Distribution
One of the primary goals of your estate plan should be to outline how your assets will be distributed. A good way to do this is to divide them into three categories: real estate, financial, and personal assets. Real estate assets include your home, and other landed properties. Financial assets include bank accounts, investments, and insurance policies, while personal assets include items of sentimental value, such as family heirlooms. The next step is to specify the beneficiaries of each of these assets and officially document your decisions in a will or trust. You can also name an executor or trustee to handle your affairs on your behalf. This will help avoid future family disputes or any confusion regarding the distribution of your assets.
Provide for Dependants
The second priority is to make provisions for your dependents. This applies to people with minors, elderly relatives, or individuals with special needs. In such cases, you’ll have to find guardians who align with your parenting style and values. You might also need to create trusts and other financial arrangements to ensure your dependents have adequate financial support. Additionally, you might need to appoint a medical power of attorney to make healthcare decisions on your behalf.
Preserve the Value of Your Assets
The third priority is to preserve the value of your estate for your heirs. This involves minimizing taxes and other expenses that may arise. A good strategy for this is to set up a trust. This shields your assets from probate, allowing you to avoid extra costs. You can also consider making gifts during your lifetime to reduce your taxable estate. Finally, you can ensure that the beneficiary nominations on all your financial accounts and insurance plans are up-to-date to avoid additional inheritance costs. By employing these strategies, you get to save your beneficiaries’ money and ensure a smooth transition process.
Contact Attorney Bucklin For Estate Planning In Massachusetts
Creating an estate plan is a crucial way to protect your assets and your loved ones and maintain control of your assets after your death. To create a comprehensive plan, you must consider three priorities: asset distribution, provision for dependants, and preservation of your assets. For professional assistance in creating an estate plan, contact Attorney Andrew Bucklin. Please get started by calling us at 781-632-8675 or filling out our easy-to-use online contact form.
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