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When you pass away without a plan, there is no accounting for where your assets and belongings will go. While it’s not the best thing to think about, at some point in your life, you have to consider creating an estate plan to get all of your affairs in order and make sure your loved ones are taken care of.
Starting your estate plan as early as now will ensure that you won’t encounter too many hiccups in the future. As soon as you are responsible for your finances, it’s time to start thinking about it. Here is a short guide on how to create an estate plan.
When Should You Start Your Estate Plan?
Ideally, you should be starting your estate plan when you become a legal adult, updating it periodically about every three to five years after you begin. For most young adults, this isn’t something you think about until later, but it’s time to reconsider.
Many life events should act as a sign for you to draft an estate plan. It can be something small, like starting a savings account. With an estate plan, you will secure your loved ones’ inheritance. It could also be momentous life events such as marriage, having children or even an inheritance that you receive yourself. These things will make you want to protect your assets and make sure your end-of-life wishes are fulfilled.
Nominating a Guardian
If you have a child, you want to make sure that they are taken care of in the event that you pass away suddenly. While it is not something you or anyone would want to think about, it’s a necessary step that will help you secure your child’s future.
When you create your Last Will and Testament, you will be asked to name a Guardian to safeguard your important documents and assets until your child becomes of age to receive them. If you are not ready to name a Guardian, you have the option not to include it until later. You should update these documents every time you have a new child.
Drafting Your Will
Not only is dealing with a sudden loss in the family shocking, but not having a plan afterwards will have your loved ones reeling and feeling lost. Without your family knowing your last wishes, your loved ones will have to make various decisions and expenses.
When you draft your Will, you can take care of everything so that your family will have less to worry about. It includes providing a healthcare proxy and even assigning power of attorney.
Creating a Trust
If you have significant assets and several people who will benefit upon your death, then you may wish to start a Trust. This will give you control over the distribution of your assets and help you avoid probate. It will also serve as a preventative measure against additional taxes or fees when your assets go to their beneficiaries.
You can never take too many steps to protect your assets and the interests of your loved ones. Starting an estate plan today will help you secure your beneficiaries’ tomorrow. There is no time to lose.
Want to learn more tips to ensure a happy and stress-retirement life? Check out these interesting blogs!
- Estate Planning Without Heirs: Everything You Need to Know?
- The Importance of Estate Planning and Why You Should Start Today
Secure your future with Coastal Advice Port Macquarie. We offer estate planning financial advice to help you save your loved ones from future stress and make sure they are taken care of even when you are gone. Consult with us today to learn more.
Disclaimer: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Coastal Advice Port Macquarie, and Sydney Wealth Advisers are subsidiaries of Coastal Advice Group which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.