Tue. May 26th, 2020

3 Important Parts of Estate Planning That You Should Prepare Now

2 min read

Planning your estate is much more involved than just drafting a simple will with a lawyer. Yet, some people are unaware of the necessary items that a well-thought-out estate plan requires. Here are 3 estate planning must-haves to ensure that you are covered after your death.

A Will

Some people are under the misconception that will estate planning Boulder is only for the rich or for those with many assets. In reality, wills ensure that your property, however much or little you have, is distributed properly among your loved ones, so it is important to ensure that it is written correctly. If your relationships change, always remember to alter your will accordingly so the correct people receive what you want to leave to them.

 Beneficiaries

If you have accounts such as a 401(k) or other investments, you are often required to designate a beneficiary to receive those funds should you pass away. Choose wisely, and also consider choosing a backup beneficiary should something happen to your first choice. If you do not name someone to receive these funds or your beneficiary is deceased or unable to claim the money, the recipient of the funds could be decided in court.

A Letter of Intent  

If you have specific wishes for after your death, such as funeral details or even what you would like to happen to a particular asset, then a letter of intent is a great idea. This letter is also a nice way to explain why you have left (or not left) certain items to certain people. You can also thank those who are taking care of pets and other assets in your absence.

Estate planning can be an involved process, but it does not have to be overwhelming. By putting these items into place early, you and your family will be prepared for whatever the future brings.

 

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