Estate planning involves more than just choosing who will inherit your possessions when you pass away. Proper estate planning requires the selection of estate trustee, a power of attorney, legal guardians for minors and creating trusts.
We’ll examine some tips on what to keep in mind when organizing your estate. To start us off, here are some helpful points from national insurer Sun Life Financial to consider when drafting a will.
Proper estate planning requires specific instructions on how you want your estate handled, and by whom. To avoid disputes among surviving family and friends after you pass, consult an estate lawyer to help you draft your wishes.
Some considerations to think about before drafting a will:
Who will take care of your stuff?
You will need to choose an estate trustee. This will be the person who administers your will. He or she will use your estate to pay off your debts, sell off any property, access your accounts and give your beneficiaries their inheritance. This person shouldn’t be a witness or beneficiary to the will, and should be someone who’s judgement and values your trust.
Who will look after your children?
In the event something should happen to you before your children become legal adults, you may appoint a legal guardian to look after them. You may also want someone to hold on to any inheritance until your children are legal adults. This person is known as a trustee, and will hold items such as property or finances until the beneficiary comes of age.
Are there special situations that need to be clarified?
As people age, their family, relationships, and assets change and evolve. Business ownership, corporate shares, second marriages, mixed families and step-children can all create contentious issues when the testator leaves no clear actions on how certain assets should be divided.
Always Review And Update As Needed
If you accumulate new property or if you’ve divorced and remarried with more children, you may forget to update your will to include these new changes. Make a habit to review or address your will as you get older to include new life developments.
