Estate planning can be an intimidating process, as you have to consider many things and account for how your family and tax laws can change over the years. It can be helpful to think of the process like an investment, where thoughtful planning now pays dividends in the future. If you want to prepare for your and your family’s future effectively, you need to know the basic steps of the estate planning process.
Take Inventory of Your Estate
The first step is to take an exhaustive account of your estate and assets. Your estate comprises all property and possessions you own, including:
- Your house
- Bank accounts
- Investment accounts
- Vehicles
- Savings accounts
- Other real estate
- Personal possessions (e.g., furniture, clothing, books, collectibles, etc.)
The larger your estate, the more comprehensive your plan needs to be. Wisconsin does not have an estate tax, but assets worth over a certain amount will be subject to the US federal estate tax.
Create a Will
A will is a document that describes how to divide your estate and assets after you die. The recipients of your estate are the will’s beneficiaries and can typically include family and friends. The point of the will is to decide how you want to disburse your possessions among your survivors.
Form a Trust
Like a will, a trust allows you to determine how assets are distributed after you’re gone. However, the mechanism by which it does so is quite different. Any assets you place in a trust will pass directly to the individuals you’ve named as beneficiaries without needing to go through probate, which expedites the process and keeps it from becoming a matter of public record. As such, creating a trust may be a wise decision if you have considerable assets and wish to transfer them to your survivors seamlessly and privately.
Consider Life Insurance Options
A life insurance policy can provide financial security for your dependents if you pass away. It is most commonly meant to provide for surviving children and spouses. Even if you do not have any dependents, a life insurance policy can cover your mortgage or business debts if you pass away unexpectedly and prevent creditors from coming after your estate.
Look at Healthcare Options
Most people will require some kind of healthcare as they age. Assisted living facilities and nursing homes can be expensive, so it’s crucial that you make financial arrangements beforehand so you can get the healthcare you need when you reach old age.
The Benefit of Working with an Estate Planning Attorney
Regardless of whether you have a straightforward or complex estate, you will likely benefit by working with an estate planning attorney. An attorney can advise you on the suitability of certain planning tools, draft the necessary documents so that those instruments are legally enforceable, and help you update your plan over time so that it continues to reflect your wishes.
Practical Solutions for Your Legal Problems
Our attorneys at Peterson, Berk & Cross, S.C., work tirelessly to address our clients’ unique legal problems, always putting their interests first. Whether you need to update your will or create a trust for your heirs, our estate planning lawyers are here with a solution. Contact us online or call (920) 831-0300 today for a free case consultation.