Making sure your family is taken care of after you’re gone is one of the most important parts of estate planning.
The last thing you want is to find yourself without enough money to provide for your family after the death of your breadwinner. But if you’re not careful, it’s easy for a lot of money to get passed down with little thought, leaving your loved ones in a difficult position.
You’ll need to decide who will be able to inherit from your estate and how these assets will be distributed among heirs and beneficiaries. Here are five effective estate-planning tips to help you keep money in your family after you:
- Draw Your Living Will
A living will is a legal document outlining your wishes for medical care. A will is drafted after thorough consultation with your doctor and attorney, but it might be helpful to have the two attend their meetings before the agreement.
For people dealing with the death of a spouse and children, creating a living will help to alleviate some of the financial strains that are bound to follow. In such cases, Chesapeake Wills & Trusts near Glen Burnie can offer expert advice and help with estate planning.
- List All Your Beneficiaries
If you have surviving family members, it is essential to list all of them and the number of assets they may be able to benefit from your estate. This allows your attorney and doctor to prepare goodwill with specific provisions for each person. If you find yourself in a situation where you need to transfer wealth from your estate plan into an existing choice, make sure you schedule both documents at about the same time.
- Set Up Trust Funds for Your Family
If you have a lot of money and several families, the best way to maintain the integrity of your estate’s value is by placing it into trust. This could be a living trust or health insurance trust. Setting up a trust fund will allow your heirs to use their inheritance for their needs and help protect the money from being squandered.
- If You Have Minor Children, Create a Child’s, Trust Fund
If one parent dies without leaving a will, the court is responsible for determining who will get custody of any minor children that may be left behind. And if you don’t have a choice, your family members may be the ones who decide what happens to your kids.
That’s why creating a trust fund for each child, including minor children, stepchildren, and any grandchildren, is critical. A trust fund can help to ensure that your heirs are adequately cared for and protected from these decisions.
- Gift Money to Your Family While You Can
If you have a lot of money, setting up a trust fund and a will might leave you with little money to enjoy in the short term. Giving them cash gifts while you’re still alive is an excellent way to prevent your loved ones from fighting over your choice. This can also be very helpful in avoiding probate court, as well as speeding up any potential inheritance they’ll receive.
Making sure your family is taken care of after you’re gone is one of the most important parts of estate planning. Of course, your attorney and doctor will know exactly what you want for your final wishes, but it’s also essential to understand how these people will be affected by your decisions.