Many people think that they need to have millions of dollars and assets for estate planning. However, it includes everything you own irrespective of the size. That’s why, it is important to plan whatever you have and what happens to it after you are gone. To perform the right steps for estate planning, you need to hire a Boca Raton Estate Planning Attorney. He will assess all your properties, finances and assets. You may want your loved ones to look after your estate after you die.
Understanding estate planning
Estate planning can be described as assigning or designating who will be looking after your assets and making the vital decisions related to estate, business, stocks or finances after you die or incapacitate. This way, you can organize your finances and live a stress-free life until the end of time.
Steps to estate planning
Estate planning may not be as simple as it may seem. It is important to follow a few steps for estate planning. They are elaborated as below:
- Categorize your assets
First, all your assets should be categorized as tangible or intangible assets as follows:
- Tangible assets- These assets include house, real estate, land, vehicles, automobiles, antiques, art or trading cards. Basically, they include all personal possessions.
- Intangible assets- Saving, checking accounts, certificates of deposit, mutual funds, stocks and bonds, life insurance policies, health saving accounts, retirement plans and ownership in a business.
- Assess your family needs
One of the best ways to cater to your family’s needs is to assess how you can plan your finances after you are gone. If you are married and have kids, you may want to have life insurance or dual income. In case, you have a special child, you need to appoint a guardian so that the child’s needs are catered to. You also need to write your wishes for the child’s future.
- Mention your directives
If you become medically incapable of making a decision about your medical treatments or end-of-life decisions, you may want to appoint someone who can do so on your behalf. Power of attorney is also an important document in which you will allow someone to make decisions on your behalf in relation to your finances and assets if you are dead or incapacitated.
Life changes at any time and you should review your estate planning after a few years. It can be amended as per your wishes.