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Tags: finance, estate plan trusts, estate planning
 When it’s time for you to say goodbye to your loved ones, and say hello to your maker in person, what’s gonna happen to everything you’ve worked so hard to achieve? I’m not talking about the medals and other “feel-good” rewards you’ve earned, but the material commodities you have with real financial value.
Another thing to take into consideration is what’s going to happen to your family you will be leaving behind? There’s no way you’re going to take them with you, same goes for the all of your material goods. The best thing for you to do is to try estate planning, which basically makes sure that your entire estate is distributed amongst each member of the family.
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What goes to whom and how much each one gets is entirely up to you. With an estate plan, you will be somewhat taking care of every member you care for – like giving them a form of financial assistance. Does the whole thing seem a little complicated to you? If it does, then you should consider listening to what I have to say: an estate is the totality of everything that belongs to you, be it an asset or liability.
An example of that would be the cars you own, your house, property, accounts under your name, and even your insurance policies. That means estate planning has something to do with everything you own, obviously, but to be more specific, it is: the “concoction” or scheming of what exactly is going to happen to your estate.
If that definition still leaves you puzzled, then listen to the next one: it’s the management of everything you own, who it goes to, when it goes to that certain individual, and perhaps other related conditions. If that wasn’t clear enough, you are hopeless and should get someone else to explain it to you in simpler terms! But taking you did understand (I’m sure you did), we’re ready to go deeper into the topic.
Why is estate planning so important for a guy that’s nearing death, anyway? Well without an effective estate plan, the people that you have assigned as your heirs may still get their share of the property, but will have to undergo the process known as “court probate”. This is bad for your heirs, because it can cost them 10% of the net assets you’ve left for them – they won’t be receiving what you left behind in “full”.
Do you have a child that you’re the guardian of? If you do, be sure to include them in the estate plan you’re coming up with. The reason for that is simple: if you don’t, the probate court will decide who’s the “better” candidate to look after the child when you pass away.
Now that I’ve got your attention on the importance of this type of planning, take a look at the following options you may try: first and foremost, living wills. This is what states in legal writing “what goes to who, and when”. It can be altered anytime you please, and is based completely on your will.
Next is a living trust – here you basically identify the person you’ll be leaving in charge of all your legal affairs. By coming up with a good financial plan, you can be making sure that everything turns out fine for everyone you care about.
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
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