Important Estate Planning Considerations
Important Things to Keep in Mind When Creating Your Estate Plan
Your estate plan is an incredibly important document. When crafting an estate plan, our Memphis, TN estate planning lawyer will help you ensure that you fully understand the process and are considering all important options and factors that go into your plan.
Understand The Cons of Probate
Probate court entails establishing the validity of a written will, distributing assets, settling debts, and more. Most people want to avoid probate if possible, as they prefer not to have the court handle any element of their assets. This is understandable, since the court may handle your estate much differently than you would prefer. For example; when it comes to various assets that may be discussed and assessed when involving a loved one who is deceased, different court systems may come forth with different types of compensations, they may see some assets as less valuable than others, and more. These are some of the reasons why families may not entirely trust aspects pertaining to probate, within a court system.
Moreover, probate is often costly and frequently results in an immediate devaluing of the estate. This is because, in most circumstances, probate will cost the estate around 5% in expenses. Secondly, probate can postpone dependents or heirs from receiving funds in the estate for several years. This would especially cause issues with families that are looking to get an estate planning lawyer situation resolved in a quick manner. To avoid this issue, it is recommended that you have an estate plan so that your specified wishes can be carried out.
Don’t Forget About Personal Items
Our lawyer may suggest that if you have a book collection, family heirlooms, a box of photographs, a journal, or other items that have sentimental value, do not forget about them in your estate plan. Our lawyers understand the value of personal items when it comes to estate planning. Thus, they should be some of the items that come first and foremost. We all have belongings that are of particular significance to our lives but may not look the same to another person. Listing these in your estate plan gives you the chance to think about what means the most to you. There may be certain individuals that you would like to pass your possessions. To make sure your possessions are taken care of, you may want to name people that you think would best appreciate them. This way they are not discarded and actually go to people who will value them as much as you do. The expensive and sentimental belongings and how you want them distributed must be clearly outlined, so there is no confusion.
Figure Out Who You Want to Receive Assets
Most people choose their significant others, children, and other close family members as beneficiaries. As an estate planning lawyer in Memphis, TN clients trust may explain, it is common for people to list relatives that mean the most to them as beneficiaries of their assets. But, you can also include friends and charitable organizations if you’d like! This is often overlooked by many people working on their estate plans. If there are certain charities, organizations, or causes that are meaningful to you, make sure to make note of them in your plan. Think about how you want to organize your donations to those specified causes. Whether you have certain individuals or causes in mind, make sure to name and list each of them in your estate plan so no one is left off. Think about the people who would love getting something special of yours to remind them of you for years to come, after you have passed away.
Make a List of Tangible and Intangible Assets
If you have an abundance of assets and belongings, then this stage may take some time. You want to write a list of all the assets you own, including tangible and intangible items. For instance, you need to include your vehicles, boats, homes, property, life insurance policies, stocks, bonds, jewelry, and anything else of value to you (whether monetarily or sentimental). What creating a list does, is it aids in assessing an organization. Thus, a family can better understand why some assets are tangible, why others are intangible, and how that relates to the process of estate planning as a whole. An example of tangible assets would be of books and gifts, in honoring a loved one. Meanwhile, intangible assets are those that focus on virtual assets, such as bank account funds. Overall, it is strongly recommended that you begin the estate planning process early, especially if you have a long list of assets that need to be listed. For certain items, it may take additional time to decide how you want them to be taken care of.
Assign Assets to Your Beneficiaries
Once you have completed the first two steps, then you will move on to combining these lists. Use your list of beneficiaries to assign what assets you want them to have after you have passed away. Keep in mind that if you have certain people listed on your life insurance or other policies you may need to make changes, so everything matches. An estate planning lawyer Memphis, TN families, rely on can give you information about how to make edits to such policies if needed.
Find Supportive Documentation
It would help if you found paperwork related to your assets, so the person distributing these things for you to beneficiaries doesn’t encounter road bumps. You want your plan to be as clear as possible to avoid confusion and prevent conflicts between different parties, such as family members. Gather documentation such as titles, stock certificates, policies, deeds, etc. You can share these with your lawyer at Patterson Bray, as he or she helps you finalize your living trust.
Appoint a Successor Trustee
When you have a living trust, you need to name yourself as the trustee to continue to manage assets throughout your life. But then you must choose a successor trustee, who shall distribute assets to beneficiaries based on your wishes and pay debts upon your passing. This person should be someone that you trust to handle your affairs responsibly and without motivation for personal benefit.
Contact Our Memphis Estate Planning Lawyer Today
When you would like to create an estate plan, you need the help of an estate planning lawyer Memphis, Tennessee residents can rely on from Patterson Bray PLLC. Preparing for a worst-case scenario is never something that you want to do, but failing to do it may hurt you and others. Your estate plan is something that you should not put off too long. Failing to get your wishes down in a legal document may leave those you love facing impossible choices.
A Memphis estate planning lawyer knows that a living will be a piece of your estate plan. It is a document that sets forth the medical interventions you want hospitals and doctors to make should you be unable to make decisions. Along with medical power of attorney, it provides a guide for the person you want to appoint to be in charge of your medical care during this time. Understanding what goes into a living will come in handy when it comes time to create one.
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