Estate Planning Tips for Your Retirement
A common misconception about estate planning is that it only concerns events that take place after death, such as the distribution of assets to the correct beneficiaries, and following the wishes of the deceased in terms of what happens to their estate.
However, estate planning also concerns events that could happen during life, such as becoming incapacitated and unable to speak for oneself. In such events, a thorough estate plan will determine who has power of attorney to make decisions regarding your finances, and a health care proxy to make medical decisions.
Proper estate planning is therefore of as much benefit to the living as to those who have passed on, and is a crucial part of entering retirement with security and peace of mind. Here are a few tips to keep in mind as you approach planning for your Florida estate.
Never Too Early
The sooner you begin putting together an effective estate plan, the better. Life is uncertain, and the last thing you want is to leave the fate of your assets and dependents up in the air because you didn’t have an estate plan in place soon enough.
Start putting your estate plan together now, and then continue to revisit it on a year basis, in consultation with your estate planning attorney, to make any changes as the need arises.
Drafting a Will
Your will is the cornerstone of your estate plan. Wills tell the Florida probate court how to handle what happens with your estate and names the executor or executors of your estate, establishes powers of attorney and guardians for any dependent children.
An effective will communicates your wishes clearly, with no room for misinterpretation. It is also easily found when needed, which is why you should keep it in an easy and secure location, like a safety deposit box, and inform your executor of its whereabouts.
Choosing an Executor
Your executor is the person who carries out the wishes that you outlined in your will. Executors are empowered to make legal and financial decisions regarding your estate. They are responsible for ensuring that all beneficiaries receive the assets allotted to them, and for handling all other matters related to the managing of the estate, such as settling debts and paying taxes.
Given the importance of this role, it is crucial that you select someone you know you can trust to carry out your decisions. Generally speaking, people name their spouses as their executors, but if you are unmarried it could be a child, sibling, other family member, trusted friend, an attorney, or CPA.
Whomever you select, you should also designate one or more alternates, in case something happens. It is also possible to designate more than one executor, and depending on your available options you may feel better about not leaving the responsibility in the hands of more than one person.
Estate Planning is for Everyone
Another common misconception about estate planning is that it is only necessary for those with substantial or significant assets.
Whatever property or savings you have, a proper estate plan ensures that these will be divided up in the way you want them to be. Estate planning is about protecting what we’ve acquired over the course of our lives, whatever that might be.
As mentioned earlier, there are also crucial functions of an estate that have nothing to do with wealth or property. In the event that you are unable to make your own legal or medical decisions, having a power of attorney and healthcare proxy in place is absolutely crucial for anyone, no matter your age.
Don’t Be Afraid to Get Help
Having recognized the need for an estate plan, you may be tempted to forego the time and expense of working with an attorney and get it done entirely on your own. After all, these days there are any number of “do-it-yourself will kits,” and a great deal of information is available on the internet. While do-it-yourself resources can be useful, estate planning can be quite complicated for the non-specialist even with those resources. A will put together through a template, without the guidance of an attorney, could be more easily-contested in court, and you can’t be sure that you’ve adequately covered all your bases.
Estate planning lawyers, like those at The Mattar Firm, can work with you to come up with a rock-solid estate plan that ensures a secure future for your Florida estate. Contact the Mattar Firm today.