If you are preparing to put an estate plan in place, then well done. Many Americans continue to put this off, so beginning the process helps you get ahead of the curve. It really is an essential task to cross off your to-do list.
So where do you start? Here are a few tips.
Determine what you have
Preparing a list of all your assets will be necessary to make the estate plan comprehensive. Otherwise, you may overlook something, which could cause confusion if you do not remember to add them to the plan before you pass away.
Listing your debts can also be useful, as it helps you get a clearer picture of how much you will have to pass on after debts are paid. Remember that creditors can sometimes claim against the estate of someone who dies in order to recover what they are owed. This will mean there may be less left to distribute.
Think about whom you would like to benefit
Your list of beneficiaries might be short. Perhaps you intend to leave everything to your two adult children. Many people, however, like to spread their generosity further, perhaps including grandkids, charities close to their heart or a friend who helped them through difficult moments. Having that list in front of you allows you to balance things out as you see fit.
Make a list of questions
You’ll likely realize that there are many things you do not fully understand about estate planning. Jotting these down on a pad of paper permits you to pose those questions at your first meeting with an estate planning professional as you begin to create your plan.
