One of the most important factors in protecting your family upon your death is creating an estate plan. By forming an estate plan, you will be able to decide how your estate is divided upon your death or should you become incapacitated. But what exactly is an estate plan and when is the appropriate time to begin putting it together.

What is an Estate Plan?

No matter who you are, everyone has an estate. Everything you own is included in your estate; possessions, bank accounts, investments, insurance, and more. An estate plan allows you to make the decision of how your estate is divided while you are still capable of making such decisions. While dividing your assets through a will or a living trust is what most people consider an estate plan, there is actually much more to it.

If an unfortunate accident occurs and you become incapacitated, you may not be able to make certain decision regarding your health or your estate. By creating an estate plan, you will be able to map out your preferences which will then be followed. An estate plan can include such aspects as instructions on how you want your children raised (religion, education, values), instructions on how you want your health handled should you become incapacitated for any reason, name a guardian for your children if they are under age, and transfer any business assets. Any aspects of your life that you have a preference about and would like followed after your death, you can include in your plan.

Forming an estate plan will also have a positive impact on your family and friends. Losing a loved one can be a devastating experience and the last thing you want them worrying about is your estate or expenses. You will be able to limit the amount of taxes regarding your estate, any legal fees that may be required, and court costs when the estate goes into probate. Planning ahead will allow you to take the burden of these aspects off of your loved ones.

When to Create Your Estate Plan

Many people assume that they can put off creating an estate plan until later in life when death is more eminent. However, like many aspects of life, death is an unexpected event. And if something were to happen that cuts your life short, you want your loved ones and your estate to be protected. With that in mind, it’s never too early to create an estate plan.

To ensure that you have included everything you need into your estate plan and have properly fulfilled the legal requirements, you should consult an estate lawyer. But there are tasks that you can do to start the process before seeking professional assistance. The first thing you should do to prepare for creating your plan is to take inventory of all of your assets, including investments, retirement accounts, insurance policies, real estate, business interests, and financially or emotionally valuable items.

Once you know what assets will be included in your estate plan, you can start making determinations about who should inherit your assets and what you want to achieve with any accounts. This is also a good time to make other decisions, such as how you want your business affairs and medical decisions handled and the raising of your children. With all of these decisions already made, you will be able to effectively create an estate plan that displays your instructions.

When you have made the decisions regarding your estate, you should discuss your plans with family and friends. If you personally tell them how you want your estate handled, there is much less of a chance that there could be a disagreement during probate. This will make the process easier and create less of a burden on your already grieving family and friends.

The creation of an estate plan is an essential part of protecting you and your loved ones should you become incapacitated or upon your death. Through your estate plan, you will be able to determine who receives the different aspects of your estate and how you want certain aspects of your life handled when you are no longer capable. If you have yet to create your estate plan, come to France Law Firm and let us help you prepare for the inevitable future.