A Quick and Easy Estate Planning Guide

Estate Planning
estate planning

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Not many people like to think about what will happen when we die. But we cannot avoid it, and this easy estate planning guide might help shed some light on your options. From asking yourself the right questions to naming beneficiaries, here are some things you need to know.

Taxes and Estate Planning

When you leave assets to loved ones when you die, they are subject to taxes in most cases. There are ways to reduce the impact or avoid them altogether, and it depends on how you leave assets. A trust is a great way to avoid beneficiaries having to pay large sums of tax on an inheritance. You need to consider getting an EIN for a trust so the probate tax burden of estate taxes, inheritance tax, and gift tax is lowered. An estate planner can help you with this.

What to Consider

There are many considerations when it comes to getting your estate affairs in order. It can be a big decision, and the impact can change the lives of those you care about. For example, you must consider who exactly will inherit what you leave behind. Are there any items that need to be divided? And is there someone you would prefer to act on your behalf to distribute your estate? These are critical decisions because you want the job done well when you are gone.

Easy Estate Planning with Trusts

Around 60% of people don’t leave even a will, never mind an estate plan. Estate planning is a hard task, and professionals can help. They can do this using trusts you can set up which help take care of your loved ones when you finally pass away, and your will is executed:

A bare trust is a simple setup where beneficiaries access assets and income.

The assets of a discretionary trust are distributed by an appointed trustee.

Mixed trusts combine different types to be used under different circumstances.

A trust ensures that your will is executed as you intend it to be. Working with an estate planner, you can name beneficiaries, appoint a trustee, and ensure assets are divided as you wish.

Naming Beneficiaries

It is often easy to name beneficiaries when planning your estate. These are usually those closest to you, such as children, siblings, or even parents. If you don’t name them, it becomes a matter of the state deciding how your assets are distributed. This might seem easier, but it can get ugly, and some people can lose out. However, if you explicitly name who gets what, there is almost always no contention of the will, and you can rest, knowing it will all be taken care of.

What to Include in a Checklist

There’s a lot to contend with when it comes to planning your estate. Some of the things to check off include your last will and testament, setting up a trust, and assigning beneficiaries. It also helps to outline healthcare wishes, whether you want power of attorney or listing insurance documents. Finally, gather proof of identity to avoid legal disputes and delays, grant titles and property deeds to interested parties, and provide an executor with digital logins and passwords.

Summary

Remember taxes for easy estate planning for you and the family. You can consult with an expert to set up a trust. And make a checklist for what needs to be done, such as naming beneficiaries, gathering any proof of identification, and providing digital passwords and logins to trustees.

One thought on “A Quick and Easy Estate Planning Guide

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