Estate planning is the legal and financial planning you do to prepare for your future. It involves working with a lawyer and an accountant to help you decide what assets you want to leave behind when you die, how much money you want to give away, and how much money you want to pass on to your heirs.
Estate planning services can help protect your family from future financial hardship and provide tax benefits in the form of charitable gifts. You can also fill out a will, which outlines who will inherit what property if you die without a will or don’t have time to write one.
Estate planning involves a range of legal, tax, and financial issues that you need to consider when you have children or other family members who will inherit from you.
Here are some questions you should ask an estate planning attorney.
Do I have any debts or liabilities?
If you have a mortgage, it’s a good idea to have a home equity line of credit or cash-out refinance that can be used to pay off your mortgage. Otherwise, you will have to pay taxes on loan. You should also ensure that you have enough money in the bank to cover at least six months of living expenses in a cash emergency. If you don’t, then you may need to sell something of value just so that you can afford food and shelter.
Who has power of attorney for me?
This person can make decisions on your behalf if you become incapacitated and unable to do so yourself. They must be someone you trust and feel comfortable with, such as a family member, friend, or trusted attorney. The person named in this document will be responsible for making all financial and legal decisions on your behalf should something happen that prevents you from doing so yourself. In addition, they will manage funds that are already yours when you die until your estate settles. It is important to name a person who can do this because many people find it difficult to come up with such an arrangement themselves when they may need help most.
Conclusion
Estate planning is the process of devising a plan for your wealth to be distributed upon passing. It’s important to get into the habit of estate planning as early as possible while at a relatively young age. It’s best to think of estate planning as an element of financial planning rather than in isolation, as most people do, so that you can be sure that all aspects of your life will be taken care of in your absence. As it is important to plan your finances so that your business lasts beyond your lifetime, it is equally important to plan out how your wealth will be distributed when you are no longer here to assume those duties yourself.