When Aretha Franklin died in 2018 without a legal will, she joined a long list of famous people, including Abraham Lincoln, Pablo Picasso, and Jimi Hendrix, among others, who did the same. This way, by failing to prepare a real estate plan, the “Queen of Soul” made the task of settling her affairs a lot more complicated for her successors. And while your real estate is probably not as large or expensive as the famous singer’s assets, you definitely need to establish a real estate plan in place to ease the burden on your inheritors long after you’re gone.
The thing with estate plans is that for many people, creating an estate plan is a task that can easily get pushed to the bottom of the to-do pile. While some people think that such plans are only for the super-rich, and others want to avoid thinking about complex topics, the truth is that everyone should have an estate plan in place. Apart from arranging the final distribution of your hard-earned assets, estate plans also include vital documents and address a wide range of knotty issues, like who’ll be the guardian of your kids in case you suddenly pass away.
So, with the legal advice of distinguished local estate planning professionals, such as the law office of Christopher P. Walker if you live in California, and other financial professionals, drafting an estate plan is way easier than what you may think. Such experienced advisors can help you ensure that you don’t miss out on any critical pieces and that your plan addresses all your needs. So, since having a plan in place can help give you and your family real peace of mind, here are four things to watch out for when drafting a real estate plan to protect your assets.
4 Essential Things To Look Out For When Drafting An Estate Plan
As you’re drafting your real estate plan, it’s in your best interest to carefully consider everything, even if that means that drafting your plan may take a while to complete. Here are four essential things to watch out for along the way.
Plan Your Estate Right Now!
Do you know that only 42% of U.S. adults presently have real estate documents such as a living trust or a will in place? And for people with children under the age of 18, that figure is even lower, with only 36% having an end-of-life plan put together.
While two out of three adults state that they don’t have a will because drafting a will seems like they’re admitting their mortality, that certainly shouldn’t be the case with you. Of course that it’s not just the old and infirm who need to compose a will and make a thorough estate plan. Everyone needs a will so that their final wishes are respected, knowing that the unexpected can knock on the door at any time.
For that reason, get in touch with a prominent family law attorney from your area and have them help you compose a will and start drafting your estate plan. For example, suppose you live in Colorado. In that case, you can book an initial online consultation with the best family law lawyer in Denver from the comfort of your home to discuss which estate planning documents they recommend to protect your assets from lawsuits, creditors, high taxes, and over-eager family members.
Name An Executor Who’s Willing And Able
An executor is a person who will carry out your will or trust, a task that might prove to be rather challenging when the time comes. Being an executor involves distributing money and assets under the stipulations of the documents and ensuring that the real estate is appropriately steered through the legal system.
For that reason, you want to be sure that you’re naming an executor or executors who will be up to the task when the time comes. Of course, that means that you’ll need to speak with them and ensure that they’re willing and able to act as executors of your estate plan.
Think It Through If You Want To Leave It All To Your Children
While many young families give all their assets to their children at passing, the problem with this strategy is that if the parents pass away when the children are young and don’t establish the proper trusts, the children will have access to all of the money when they reach the age of majority.
The best way to address this issue is to really think about how much you want to give to your kids and at what age they will gain access to the money if something happens to you. These questions need to be thought through long and hard to ensure that your estate plan is established precisely as you want it to.
Always Keep Your Estate Plan Up-To-Date
Once your estate plan is set up and good to go, it’s worthwhile to review your plan from time to time. For instance, you can have a look at it every five years to be sure that everything is still how you intend it and that tax laws haven’t changed meanwhile.
Final Words
Even though it can be difficult for some individuals to establish an estate plan because it reminds them of their mortality, estate planning is a process where you can show your family and friends how much you care about them and how you’ve remembered them with particular objects or assets. After all, your estate planning documents are not for you but for those that are left behind.