Organizing your estate may seem like a daunting task. Yet, with the right information, you can simplify your planning. Not only is it helpful to understand what estate planning entails, but what you will need to get through the process.
Planning your estate can help organize your property and plan for the future. It can also help minimize errors and make matters easier for your family after you pass.
Thinking it through
Before you sit down to organize your estate, you will want to gather some essential items and information, including the following:
- Financial powers of attorney
- Proof of identity
- Insurance policies
- Property deeds and titles
- Revocable living trust
When writing your last will and testament, you need to make a list of all your property and assets and determine who you would like to receive your things once you pass, according to U.S. News. If you have young kids, you will also want to think about who to appoint as their guardian. Finally, it is important to consider who to appoint as your personal representative or the person who will oversee the matters of your estate upon your death.
Planning for the future
When organizing your estate, remember that your plans are not set in stone. You can revisit your documents and revise your plans if life circumstances should change. You can set up your estate so that it bypasses the probate process, or directly transfers assets to your beneficiaries under specific conditions. As you grow older, you can modify your plan according to what best fits your life.