Creating an effective estate plan can occasionally feel daunting, but it doesn't have to be. Taking a few simple steps today can help ensure that you and your family gain the maximum benefit from your hard work and hard-earned assets. Here are some basic strategies for starting, fine-tuning or updating your estate plan.
Create a Will
A surprising number of successful people including doctors, executives and business owners lack a basic will. Others forget to sign their wills or update them regularly. Make sure you have a basic will and that your document is up to date, has been signed and notarized. In addition, make sure that your executor has a copy that can be easily found in the event of your death. If you want to know more about estate plan then you can also look http://speedwelllaw.com/alexandria-estate-planning-attorney/.
Establish a Living Trust
A living trust provides several important benefits. If you become incapacitated for any reason, having a living trust in place allows you to retain full control of your estate. Without a living trust, your state of residence could potentially appoint a guardian for you according to state law if aren't able to make decisions for yourself.
Keep Life Insurance Outside of Your Taxable Estate
Life insurance benefits can sometimes unintentionally expose your heirs to the estate tax. To prevent this from happening, consider buying your life insurance policy within an irrevocable life insurance trust this will keep your life insurance benefits entirely outside of your estate.
Review Your Estate Plan Regularly
Once you create your estate plan, review it with your wealth manager, tax professional and/or attorney every 3 to 5 years. It's crucial to keep up with changes in tax laws, making sure that your plan reflects both your wishes and any new tax laws.