Are you starting the estate planning process?

Although thinking about the end of your life isn’t pleasant, it is something everyone needs to do. If you want to have a say in what happens after you pass away, planning your estate is essential.

And while estate planning can sound like an intimidating process, it doesn’t have to be. By starting with the estate planning basics, you can start the process of making sure your family and your assets are protected after your passing.

If you are ready to plan for the end of your life and beyond but aren’t quite sure where to start, this short and simple guide is for you.

Start With a Comprehensive Inventory

The first step for planning your estate is to inventory your personal assets. This is a simple process, you just need to list all of your assets and assign them a reasonable value. Include everything in your inventory, including your home, vehicles, 401(k), jewelry, and more.

Determine Your Family’s Needs

The next step in the process is to determine your family’s needs. If you have a complicated situation to plan for, consider hiring an estate planning attorney. While you will have to spend for the cost of probate, you can potentially save time and money in the long term.

Create a Will

The next step in the process is drafting an estate plan. You need to create a will and choose your beneficiaries. If you have children or dependents, make sure to name a guardian in your will.

Determine Your Directives

Part of effective estate planning is determining your legal directives. This can include a trust, medical care instructions, and more. You can also create your healthcare, financial, and general power of attorney. Make sure you are careful about who you are giving your power away to.

Make Your End-of-Life Arrangements

While you likely think of estate planning as planning for after your death, a comprehensive estate plan also includes your end-of-life arrangements. These are your instructions about what you want to happen if you are not capable of making decisions at the moment. Think carefully while creating this plan.

Store Your Documents

After you’ve created your estate plan, you need to find the best place to store your documents. If you have a lawyer, the most logical place for them is with your lawyer. However, whether you have a lawyer or not, you also need to keep a copy for your own records.

These Are the Estate Planning Basics You Need to Know

If you are ready to plan for the end of your life, these are the estate planning basics you need to know.

Start by conducting a comprehensive inventory audit. You should also determine your family’s needs, create a will, and determine your directives. Make your end-of-life arrangements, include the essential documents, and store them correctly.

Follow these tips and you’ll be well on your way to creating an estate plan.

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