Imagine if the inevitable happens and there is no estate plan in place. Your family will then have to go through a number of difficulties. Most of the matters may not get resolved the way you would have preferred or in a manner that they would benefit your wife and children the most. This is why estate planning is so important, as it allows you to protect your children’s rights after your demise.
Here are a few essential steps you must take if you want to safeguard the rights of your family:
Craft a Will
A great number of people do not make wills. This is a huge mistake, because even if there is no large estate to be managed, there are always other financial matters that need to be taken care of, after a person’s demise. This management procedure can be made extremely easy if the owner leaves a document that will ensure their children’s rights are protected.
With a will, you get to name a trusted person who will be given the rights to execute your estate. This arrangement can solve a number of problems, as opposed to having a state appointed individual taking care of your underage children’s rights.
Consult your Attorney concerning the Trusts
You can allow your estate to bypass probate and the hassles associated with it by establishing a living trust. However, this option is only advisable if the estate is worth at least $2 million, if you want to keep the estate affairs private, or if you have real estate in various states. If none of these conditions apply, then creating a trust within your will is sufficient. You can consult an experienced attorney on the matter to ensure that your family is benefiting considerably from the situation.
Power of Attorney
A power of attorney is an authorized person to whom you give the power of handling your affairs in case you fail to take care of them on your own. This can be of two types—financial power of attorney, taking care of financial matters on your behalf and medical power of attorney, who can take healthcare decisions for you. In case you do not name a power of attorney, your loved ones will be made to go to court, even for taking care of the minutest of affairs.
In order to ensure that your children are well provided for after your death, you are recommended to opt for life insurance. This will cover for your lost income. It is always advisable that you share this information with your attorney and find the best life insurance option.
Death is inevitable and not in your hands, but proper management of finances for your future generations is something you have control over. For further details, contact us for quotes for the best life insurance plans.