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There are plenty of reasons why many of us have procrastinated
in putting together a will or estate plan. Perhaps the
single biggest reason is that “life gets in the
way.” Days are packed with commitments to job,
family, school, church and community. There are too
many other things that have to get done today.
If you have been “too busy” to give serious
thought to a will, you are not alone. Almost 60% of
American adults lack a basic will. One of the most important
reasons for a will is to make certain provisions are
made for the care of your children who are minors, while
also making financial provisions for your family, picking
someone you trust to oversee your estate, outlining
any specific wishes on the distribution of your assets,
and supporting your favorite charitable organizations.
Now is the time.
Everyone’s circumstances are different,
but there are a few things that almost everyone should
consider when planning their estates:
1. If you have minor children, select a guardian. Custody
of minor children or other dependents could be decided
by a court if you die without making your wishes known.
2. Designate your heirs and determine how much and
when they receive your assets.
3. Prepare medical and financial powers of attorney
in the event you become incapacitated.
4. Select a family member, friend or trust company
to administer your estate. This personal representative
would distribute your assets in compliance with the
directives of your will or trust.
5. Discuss and put in writing your wishes for funeral
arrangements.
6. Designate who should receive any treasured items
or special family heirlooms. If you make your wishes
clear, this can greatly reduce the possibility of disputes
over your possessions.
7. Have up-to-date beneficiary information on your
insurance policies and retirement accounts.
8. Prepare a net worth statement, listing all of your
assets and liabilities. Include account numbers and
contact information for your bank accounts, mutual funds,
brokerage accounts, mortgage and other major loans,
as well as life insurance policy numbers.
9. Make sure that the person you have named to administer
your estate has a copy of your will, has access to your
list of assets and liabilities and has the names of
your accountant and lawyer.
10. Consider a charitable gift as part of your estate
plans.
11. Consider whether you could benefit from professional
legal or financial advice. A well-drawn estate plan
may let you reduce taxes, help protect a family business
and allow you to accomplish your family and charitable
objectives.
12. Review your estate plans every couple of years
to make sure they continue to reflect your wishes. Also,
if your circumstances have changed – children
are grown, your estate has increased, etc. – your
will may need to be updated accordingly.
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