Getting an estate plan often seems more difficult than it is. If you follow a few basic rules and steps, you can get a good estate plan with little hassle.
Many people have the mistaken idea that getting an estate plan is an overly complicated process. They let this idea stop them from doing their own planning, and they keep putting things off. Others believe they do not need a formal plan at all because they can tell their family who should get what and trust them to carry out those wishes.
Neither assumption holds up. Estate planning does not have to be complicated, and relying on informal instructions to your family can create real legal and practical problems.
Why Telling Your Family Your Wishes Is Not Enough
As the Fontana Herald News explained in “Having estate planning documents is very important,” the biggest problem your family faces if you do not make an estate plan is that they will not decide who gets your property. Instead, the courts make that decision by following state statutes that determine who inherits.
The person the court decides should receive your property might not choose to follow any directions you gave about sharing it with others. In some cases, they may not be able to follow your wishes even if they want to, because doing so could create negative tax consequences for them.
If you can take the time to tell your family how you want your property divided, you can take the time to put a formal estate plan in place that will actually carry out your wishes.
7 Steps to Get an Estate Plan
Personal Liberty offered some tips to make planning easier in “Nuts and Bolts of Estate Planning,” including:
- Organize all of your financial and asset documents so you know what you have and what you need to plan for.
- Make the important decisions about who you want to receive your assets and how much everyone should get.
- Think about how your heirs might disagree and how any conflicts can be avoided.
- Remember that your plan does not need to be perfect. You will not be able to create a plan that pleases everyone completely.
- Whenever possible, keep your plans flexible so they are easy to change when circumstances change.
- Make sure you are choosing responsible people to act as your executor and trustees.
- Do not surprise your heirs with too much. If you are planning something unusual, it is a good idea to let them know.
An experienced estate planning attorney at Simmons & Schiavo would be happy to help with this process and answer any questions you may have. To get started, call 781-675-1315 or visit our contact us webpage today.
References:
Fontana Herald News (August 7, 2017) “Having estate planning documents is very important.”
Personal Liberty (Oct. 28, 2016) “Nuts and Bolts of Estate Planning.”