What is an estate plan?
It's a collection of documents that specify how you want your money and other assets distributed after your passing, making it easier for your loved ones to handle your affairs during a time of grief.
Estate planning involves making a plan in advance and naming the people or organizations you want to receive the things you own after you die. It includes completing a power of attorney in case you become incapacitated. It also has steps to make carrying out your plan as easy as possible later.
Who Needs an Estate Plan?
Every adult needs some form of estate planning.
How many of the following statements apply to you?
- You want your estate distributed according to your wishes after your death.
- You wonder how your financial affairs will be managed if you become incapacitated.
- You want to plan distributions for the benefit of your descendants.
- You want to ease the burden you may leave behind on surviving family members.
- You want to appoint people to make medical decisions on your behalf if you become incapacitated.
If any of those statements apply to you, congratulations. You need an estate plan.
Benefits of Having an Estate Plan
Besides transferring financial assets and valuables to your heirs upon death, there are several other important benefits of having an estate plan:
- Decision-Making Authority: Identify someone you trust to make decisions for you if you become incapacitated.
- Childcare Provisions: Specify who will care for your minor children if you’re unable to do so.
- Probate Management: Help manage and plan for probate, the court-supervised process used to value your estate, settle any debts, and pay taxes.
Creating an estate plan can seem complicated and expensive, and it can be. Radiant and Legal Karma have created an easy, cost-effective way for you to protect yourself and your assets.
The simplest way to think about estate planning is that it helps to:
- Ensure your assets are distributed in the way you prefer.
- Grant someone else authority to make decisions on your behalf if you are unable to do so.
- Clearly define your beneficiaries.
You're likely convinced at this point that you do, in fact, need an estate plan. Now what?
How to Get Started
No one can predict the future, but one thing is sure: If we leave unanswered questions about how to settle our affairs, life for those we love could be even more difficult. Answering questions now—and formalizing them in an estate plan—is an important step that shouldn’t wait.
The first step in the estate planning process is to identify all your assets and debts. Retirement accounts, insurance policies, property, vehicles, and other valuables should all be included.
The next step is to begin thinking about the person or entity you want to be the executor of your estate. The executor is going to handle the distribution of your assets as you specified in your last will and testament.
They are also responsible for taking care of any remaining debts you might owe upon your passing. Without declaring an executor, the court would have to do so, which can complicate matters and make it take longer for your assets to be distributed.
Once you have identified your assets and thought about the specific individuals you would like to carry out your wishes after you pass, it is time to create a will. Creating a last will and testament allows you to settle matters in a written form.
Regardless of your wealth or assets, every person needs the following estate planning essentials:
- Identify Your Important Assets and Belongings: Make a comprehensive list of your assets and debts.
- Designate Your Beneficiaries: Specify the persons, people, or charities that will receive your assets upon your death.
- Create a Will: Clearly spell out your intentions and instructions in a last will and testament.
- Complete Powers of Attorney and Advanced Directives: Ensure these documents are in place in case you are unable to make decisions for yourself.
In summary, estate planning is essential for every adult. It ensures your wishes are carried out, minimizes the burden on your loved ones, and provides clarity and security for your future. Don't wait—start planning today to protect yourself and your assets.
Bonus: Affordable Estate Planning Services for Radiant Members
Radiant is excited to announce our partnership with Legal Karma to provide affordable estate planning services to Radiant members. This partnership ensures that you can easily and cost-effectively create an estate plan that protects your assets and ensures your wishes are carried out. Take advantage of this member benefit today and secure your future with confidence.