Although estate planning has many aspects, it's good to start with the fundamentals.
A recent NASDAQ.com article, titled "Estate Planning Guide 101: A Basic Guide To Establishing Your Estate," gives some basic estate planning instructions that can help get you started.
Outline Your Estate. It is important to outline your current net worth. Forbes describes this equation as:
Net Worth = Assets – Liabilities
The original article explains that assets include information detailed in bank statements, investment statements (such as from mutual fund accounts and retirement plans), trust assets and business interests. Also, include personal property and real estate. Liabilities include debts reflected on credit cards, mortgages, tax bills, student loan statements, business loans, and other indebtedness. Once you account for your living expenses, you can then see what can be passed to your beneficiaries, and whether you should gift during your life.
Name Your Beneficiaries, Divide the Assets. Next you need to decide who will be the recipients of your estate. This can be very personal and needs to be handled with care, as it is this point in the planning process when you need to think about how much of your estate will go to family and how much will go to charity.
Name Your Trustee. Naming your trustee needs to be handled with the same amount of care that you used when divvying up your assets. Selecting the person to be in charge of your affairs is no small decision, the original article cautions. Naming your trustee takes a significant level of trust, responsibility, and foresight.
Hire a Lawyer. As you work through theprocess, engage a qualified estate planning attorney. Do not leave planning your will or estate for later. Do It Now! Take the time to speak to your estate planning attorney and map out the details of your legacy now.
Much of what passes for estate planning today is little more than word processing. Someone asks a few questions and then fits you into their pre-defined box. This isn’t planning – This is simply document preparation. Don’t settle for word processing in place of quality planning!
At Idaho Estate Planning we will take time to get to know you, your family, your desires, your concerns, your goals, and any potential future problems. Your estate plan should be a custom fit not a “one size fits all”. Remember, good planning is no accident.