Estate planning is a concept that is often considered a complex process. It does involve a lot of legal jargon and formalities that will leave you overwhelmed. Plus, you need to keep your estate up to date to ensure it meets the current regulatory standards.
Your estate plan needs to be well-prepared and align with your wishes to ensure the financial security of your loved ones and that all your wishes are fulfilled.
In this article, you will learn how to plan your estate with the help of a real estate law firm in Kitchener. By seeking their help, you will be able to ensure equitable distribution of assets and financial security for your family members.
How to Plan Your Estate?
First of all, you need to have all the necessary documents for estate planning. These documents will act as life-savers, allowing your family to manage your daily affairs in case you’re stricken with any illness, hospitalization, incapacitation, or, in the worst case, death.
Still, estate planning can be an overwhelming process that will leave you distressed when you navigate it on your own. This is the process where you require legal support from lawyers in Kitchener. They will be able to guide you throughout the entire process and ensure your wishes are fulfilled.
Here are some essential steps you need to follow during estate planning with your lawyer:
- Create an Inventory of Every Article and Item You Own:
Many individuals think that they don’t have enough assets to plan their estate. However, you need to keep in mind that your estate involves everything that you can consider as your belongings.
That is why the first thing you should do while planning your estate is to create a list of belongings in two sections: tangible and intangible. Tangible items include your home and real estate properties. Intangible ones include your savings account.
You need to get all these details written down in your will and estate plan.
- Ensuring Asset Protection:
After creating an inventory of all your belongings and determining the things involved in your estate, you need to consider the requirements of your family. It is essential to think about protecting your assets and your family’s future after your departure.
You need to ensure that you have enough life insurance, depending on the needs of your loved ones. It is also necessary to choose a family guardian for your children after your lifetime and document your wishes for their care.
Furthermore, you need to get this piece of information recorded in your will and estate plan.
- Establishing Your Directives:
A basic estate plan involves different legal documents and directives that specify the actions to be taken in case you’re incapable of making decisions by yourself. If you don’t establish these specific directives, there will be serious consequences in case of your incapacitation or passing away without getting a will prepared.
- Review The List of Beneficiaries at Regular Intervals:
You need to ensure the inclusion of the right people and the kind of inheritance or responsibilities they’ll be getting. It is always essential to review your beneficiaries as these designations can be more significant than the things written in your will.
There are many individuals who often don’t remember the names of the beneficiaries in their accounts. That is why you need to always review your retirement and insurance accounts to ensure that you’ve added the right beneficiaries.
You also need to add additional beneficiaries in case your primary beneficiary passes away and you’re not able to update your designations. Always ensure occupancy in your beneficiary section to ensure your family members aren’t deprived of their rightful inheritance.
- Plan to Reassess:
If you created an estate plan a long time ago, it may become incompatible with the latest legal framework. This is why you need to revisit your estate plan on a regular basis.
You also need to keep your estate plan updated over time. In case you are dealing with a major life change, like getting married, having kids, starting a new job or business, or losing your significant other.
Your situation or circumstances may influence how you decide to distribute your assets. At the same time, the provincial laws do experience updates, implying that you need better ways to keep your assets protected and secure the future of your loved ones.
Documents Necessary for the Estate Planning Process
Some important documents you always need to have with you while planning your estate include:
- Will:
A will is the most essential part of your estate plan. It designates the way you would like your assets to be passed on to the beneficiaries of your choice. In a will, your assets should include tangible possessions along with your financial assets, investments, and even businesses that you’re running.
- Trust:
This is a legal document that allows you to pass on wealth directly to your offspring or the next generation. Having a trust by your side helps you prevent any type of interference from outside parties having no relation with you or your other family members.
A trust helps you ensure rapid transfer of assets without the need to undergo any sort of probate.
- Power of Attorney:
With a power of attorney, you can choose an individual you trust to make financial decisions on your behalf. Without this document, important decisions with respect to your home or business could go to the courts, which will make decisions that don’t align with your wishes.
Apart from these things, advanced medical directives and beneficiary designations are the most essential things you need to have by your side. These documents will help you ensure proper planning of your estate.
Summing Up
Planning your estate can leave you utterly overwhelmed. However, it will help you ensure the proper financial security of your loved ones. It will also help you ensure that your assets are rightfully divided between your loved ones without the need for a third party to interfere.
With the help of an experienced lawyer, you will be able to plan your estate effectively and ensure its execution without any hassles.