Although estate planning can seem tedious, you can still create a strong future for your family with the right tools. Continue reading to learn more about the steps involved in estate planning.
Step 1: Organize Your Assets
Collecting documentation about your assets is one of the most tedious steps in the estate planning process. You can include assets such as cars, real estate, inheritance money, investments, and other financial assets in your estate plan. You will need to organize and document your assets before you can discuss estate planning with a lawyer.
You will also need to identify who owns these assets. To put it another way, you will need to review any title documents that may indicate ownership to ensure that you are the owner of what you have. Avoiding joint ownership in estate planning is best.
Step 2: Evaluate Your Debts
You can leave debt to your loved ones, and you may be able to sell any assets in probate court. Although this is not always true, assets that are sold in probate court may not have the same value as what you intended to leave your beneficiaries.
Also, it is important to make sure your loved ones are covered by auto, homeowners, and life insurance policies. These policies will pay you a payout that can bridge the gap, giving your family financial security so they can concentrate on your legacy.
Step 3: Authorization of Attorney
The power of attorney can have a wide-ranging effect so make sure you trust your choice. If you are unable to make financial or medical decisions for yourself, you should think about who would be able to make them on your behalf.
Even if you are not incapacitated or available, a POA can be made effective at any moment. Consider when you would like your power of attorney to be effective, and what decision-making powers you want. Talk to trusted legal representatives about your situation. They can help you make an informed decision.
This article was written by Alla Tenina. Alla is a top tax resolution attorney in Sherman Oaks CA, and the founder of Tenina Law. She has experience in bankruptcies, real estate planning, and tax resolution Orange County. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.