12 Simple Steps To Create An Estate Plan Right Now

Bloomfield Township estate planning lawyer

Most often, estate planning is a neglected part of financial planning. In fact, more than 50% of Americans don’t have a will, and only a very few have an estate plan. The majority of us would benefit from an estate plan, even though a will is considered a simple legal document that contains the desire of an individual about the distribution of his/her properties. An estate plan goes even further than a will. It deals with the legal wishes of the person and the distribution of his/her assets. An estate plan can also help you and your heirs pay less in taxes, court charges, and other fees over time. Here are 12 Simple Steps to Create an Estate Plan.

  1. The first step is to make a will. You should name the person(s) whom you wish to inherit your assets. You can also name a guardian to take care of the kids if something happens to you and the other parent.
  2. Considering a trust is the second step in the process of creating an estate plan. When you hold the property in a living trust, your family will not have to go through an expensive and time-consuming process in a probate court.
  3. The next step is to make health care directives. When you write down your wishes for health care, it will protect your in the long run if you become unable to make decisions regarding your medical health. This gives the power to someone you nominate to make medical decisions on your behalf if you cannot do it yourself.
  4. Making a financial power of attorney is the fourth step in the process. When you include a power-of-attorney (finances), you give a trusted individual the authority to handle your finances on your behalf. This person is known as your agent or attorney-in-fact. But he or she doesn’t have to be an attorney for this purpose.
  5. Protecting the properties of your children is the fifth step in the process. Name an adult to manage the assets your minor children inherit from you. He or she could be the same person as the personal guardian that you named in your will.
  6. Filing beneficiary forms is another step in the process of creating an estate plan. You should name a beneficiary for retirement plans and bank accounts. This will make such accounts automatically payable to the beneficiary on your death. Such funds will skip the probate process.
  7. Life insurance should also be considered when creating an estate plan.
  8. Understanding estate taxes is another important step in the process. More than 99% of the states do not owe federal estate taxes. In fact, the federal government would impose an estate tax at your death only if the estate is worth more than $5.45 million.
  9. Covering funeral expenses is another important aspect to consider when creating an estate plan. You can set-up a payable-on-death at the bank and deposit money into it to pay for your funeral and other expenses.
  10. Making the final arrangements known regarding body organ donations and cremation/burial.
  11. If you are the sole owner of the business, you need to devise a succession plan for the company.
  12. The final step is to store your documents. The trustee would need to access the following documents at your death: will, trusts, insurance policies, stock certificates, deeds of properties, bank account details, retirement plan details, credit cards, mortgage loan details, and funeral repayment plans, etc.

Schedule Your Free Consultation with Our Michigan Experienced Estate Planning Attorney

Einheuser Legal, P.C. is an estate planning law firm in Bingham Farms, Michigan. We help families set up wills and living trusts. Attorney Michael Einheuser is an experienced estate planning lawyer serving residents in Bingham Farms, Troy, Farmington Hills, Rochester Hills, Southfield, West Bloomfield Township and Bloomfield Township.

Schedule your free consultation today by calling 248-398-4665.

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