Tips to begin creating your estate plan

On Behalf of | Dec 31, 2021 | Estate Planning |

Retirement planning used to be the catalyst for creating a Michigan estate plan. The focus included asset protection and possibly saving for a small place on the beach. However, in the last few years, the focus changed, and more people in their 20s and 30s are moving to ensure they can care for their loved ones if they pass away unexpectedly.

According to Caring.com, people of all ages have stopped taking their health for granted since 2019 and understand the need for an estate plan. If you want to minimize the cost of probate and take steps that help you care for loved ones after you die, here are some tips to get started.

List your assets

Start by making a list of all assets. This includes not only your home, car and jewelry but also bank and investment accounts as well as the following:

  • Retirement accounts
  • Life insurance policies
  • Business interests
  • Monies owed to you

Not only can this help you determine your beneficiaries and their inheritance, but it is also the first step in calculating your net worth.

You can estimate your net worth by totaling all of your assets and subtracting liabilities, such as mortgages, personal loans, and credit card debt. This can help you figure out the taxes your estate may owe.

Determine family needs

Probate is often expensive and time-consuming. You can minimize costly delays for your beneficiaries by having a will. If you have significant assets, an estate plan can ensure their management by naming an executor or trustee. You can set up trusts and guardianships for minor children and appoint a person to make medical decisions for you if you become incapacitated.

Discuss your will with your beneficiaries and loved ones. Let them know about your wishes for your property. This can help avoid family disputes and costly litigation.

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