Four Factors to Consider when Completing Estate Planning

While no one likes to think about death, the reality is that death is unavoidable. Therefore, it is important to plan for this inevitability in order to help reduce the stress and confusion your loved ones will face when you pass. To that end, there are a few important facts about estate planning that you need to keep in mind as you make your decisions and before you sign your will.

Make it Clear

The sad reality is that many families are torn apart due to a lack of proper estate planning. If you fail to write a will or if you leave out important assets, your loved ones may deal with litigation and other issues after you pass away. If you fail to write a will, the state will decide who gets your assets. This may result in your spouse getting more or less than you desire or it might mean that your children don’t get any of your assets. Failure to properly draft a will also prevent your family from being able to take full advantage of federal tax exemptions, which means they will have to pay more taxes than they would have had to pay if you had planned ahead.

Itemize Personal Items

When drafting a will, it is important to consider more than just your liquid assets. Many of your assets may have little monetary value, but have a high sentimental value. Others may be valuable in both ways. These items, such as jewelry or artwork, should be listed with specific instructions regarding who is to receive them.

Consider Setting Up Trusts

To protect your assets and to ensure your money is going to the right people, you might want to consider setting up trusts. If you simply will money to a spouse, for example, that spouse may lose some of that money if he or she gets divorced after receiving money from your estate. If you put the money into a trust, however, that money will be protected. Setting up a trust also ensures the money will not be distributed to a surviving child until he or she reaches a certain age.

Choose Fiduciaries

Fiduciaries, or trustees, are individuals who are appointed to complete certain tasks on your behalf. As you are planning your estate, you should select people to serve as guardians to your children and individuals to handle your assets after you pass away. Making these decisions can be difficult because you have to choose someone who you can trust. Take the time to really consider what different people have to offer to you within these roles and be sure to include those individuals in your planning so they are clear on what you want to happen to your assets after you pass.

Estate planning can be a difficult process and is one that should involve a professional. To learn more about the value of your Colleyville home or about real estate opportunities in the Dallas-Fort Worth region, contact our team of knowledgeable and experienced real estate experts today.

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