Do you have your inheritance plan? If not, what are you waiting for? Every adult needed an inheritance plan, even if it was a simple Will. Here are 5 easy steps to help you get started with housing plans and protect your family and assets. To make a comprehensive plan, you need to gather information and make some important decisions.
Make a list of your current assets and liabilities.
To begin the estate planning process, you must have an understanding of your current financial situation. You can do this by listing all of your assets and liabilities to help your estate planning attorney (or tax attorney) determine your net worth and any potential tax liabilities. You will also need to collect all your important financial documents such as recent tax returns, bank statements, investment and retirement account statements, loan documentation, and a copy of your insurance policy.
Determine your estate planning goals.
The next step in the estate planning process is to define your goals (what you want to achieve). Some of the goals include providing security for the surviving spouse; provide for poor family members; provide educational opportunities for beneficiaries; minimize federal and state or inheritance taxes; mention the name of the guardian or guardian for minors; or transfer certain properties to certain people. Your goals will guide you through each step of the estate planning process.
Decide who will receive your assets.
In Maryland and the District of Columbia you can disqualify anyone except your spouse (unless your spouse relinquishes their rights in a prenuptial or postnuptial agreement). First determine your beneficiaries (those who will inherit your property) and what you want to share with your beneficiaries. Then determine what happens to your property if an heir precedes you (died before you) or if your chosen charity ceased to exist at the time of your death. In this case, you need to name the so-called contingent beneficiary who will inherit your estate if the beneficiary precedes you.
Depending on the beneficiary’s age, health, and family and financial situation, you may need to hold off on distributing your property to that beneficiary or create a trust to manage assets for that beneficiary. Your real estate planning attorney will walk you through the needs of each beneficiary and then help you decide what to do for each beneficiary.
Choose someone to act on your behalf.
This is perhaps the most important step in the process. You need to consider carefully who will act in your best interest if you become disabled or who will act in the best interests of your beneficiaries after you die. Your inheritance plan will also include a form for you to name a specific fiduciary to act on your behalf either during your life or after your death. Your attorney will help you decide who to choose and explain the functions and roles of each fiduciary.
Find a Lawyer
The final step is to choose a competent and experienced estate planning attorney who will walk you through every step of the process so that you fully understand why and how you should take action to protect your family and assets.