Estate planning puts your mind at ease and makes things easier for your loved ones once you are gone. Nobody can predict the future and emergencies can occur at any time, which is why it is important to plan your estate now.
By not taking action now, you allow the government to get first crack at your estate when you die. The government’s goal is to take as much of your assets as possible, and it has no desire to help you or be sympathetic to the loss your loved ones just experienced.
There are several things you can do right now to tie up loose ends in your estate. Begin by compiling an inventory of your assets and creating a will or updating your existing will. Dying without a will can cost your heirs their inheritance and leaves you with no control over how your assets are handled once you are gone.
In addition to or in place of a will, you might want to create a trust. Trusts control how your assets are administered and distributed, eliminate delay of this distribution, and might allow you to reduce your estate taxes. Having a plan in place and discussing the details of the plan with your heirs now can avoid disputes and confusion in the future.
Overcome the Discomfort of End-of-Life Planning
Unfortunately, people often delay estate planning for a variety of reasons. Most healthy people are focused on living their lives, not preparing for their deaths. The idea of growing older or dying unexpectedly does not enter their minds. People struggle to make difficult choices and decisions that could upset family members. The estate planning process can be uncomfortable and unpleasant, but avoiding it makes things in the future even more uncomfortable and unpleasant.
A few important items to remember as you start the estate planning process:
- In addition to a will, you should also designate a power of attorney. This is the person or entity that will make decisions on your behalf if you become incapacitated.
- You should consider a living will and a healthcare proxy, also known as a medical power of attorney. This eases the burden on your loved ones regarding the difficult decisions they will need to make if a medical emergency arises.
- Be aware of federal and state laws when making decisions about your estate. An estate planning expert can help you bring everything together and make the best decisions for your circumstances.
Finally, if you already have a will or trust in place, but it’s been awhile since you’ve reviewed it, now is the time. As your life changes, it is important to update and revise your estate plan.
If you have questions about the most recent changes to the tax laws or you need assistance with tax or estate planning, contact an experienced tax professional. Feel free to contact us to answer your questions at 516.537.4440