11 Simple Steps to an Estate Plan

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There are 11 simple steps to plan your estate. First is to make a will. You have to state who you want to be the heir of your properties and you can also put down the name of guardian of your children if ever something happens to you. Second be sure to consider a trust. If you hold your property in a living trust, your survivors won't have to go through probate court which is known to be time consuming and costly process. Third is making a health care directives. You write down your wishes for your health care here if you are no longer able to make medical decisions for yourself. Fourth is hiring an agent or attorney. By having an attorney for your finances who uses website software, you have the power to give a trusted person the right to handle your finances and properties if you are unable to handle it. 

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Fifth is to protect your children's property. You should name an adult or the guardian mentioned in your will to manage any money and property your still minor children may inherit from you. Sixth is filing for beneficiary forms. Naming a beneficiary for bank accounts and retirement plans makes the account automatically "payable on death" to your beneficiary and allows the funds to skip the probate process. Likewise, in almost all states, you can register your stocks, bonds, or brokerage accounts to transfer to your beneficiary upon your death. Seventh is to actually consider having a life insurance.

 

A life insurance is a good idea when you have children, if you own a house, if you owe significant debts or an estate tax when you die. Eight is to make sure that you understand estate taxes. More than 99.7% of estates won't owe federal estate taxes. For deaths in 2016, the federal government will impose estate tax at your death only if your taxable estate is worth more than $5.45 million. Also, married couples can transfer up to twice the exempt amount tax-free, and all assets left to a spouse given that the spouse is a citizen of the USA or tax-exempt charity are exempt from the tax. Ninth is to be sure to pay your funeral expenses. Instead of availing the prepayment plan that can be unreliable, you can set up a payable-on-death account at your bank and deposit funds into it to pay for your funeral and related expenses.

 

Tenth is to make sure to finalize your arrangements using an estate planning software. You can list the things you hope to be done with your organ and body including whether to undergo burial or cremation. Lastly be sure to store all the important documents. It is necessary because your attorney may need to access the listed documents: will, trusts, insurance policies, real estate deeds, certificates for stocks, bonds, annuities, information on bank accounts, mutual funds, and safe deposit boxes, information on retirement plans, 401(k) accounts, or IRAs, information on debts: credit cards, mortgages and loans, utilities, and unpaid taxes and information on funeral prepayment plans, and any final arrangements instructions you have made.