Estate planning is a step many people do not get to take, creating numerous problems for their loved ones. Not working out an estate plan results in chaos, where family members get trapped in legal matters for years. Negligence of this matter leads to unfortunate events, in extreme cases, cutting the loved ones from the inheritance.
A wise move is to work out your estate plan when one crosses 30 years old because life is unfortunate. Estate planning is an extremely complicated and complex task. It involves handling a lot of serious matters, and therefore many people delay it.
For anyone who is now prepared to work out an estate plan, here is a list of 10 things that they never knew existed!
Choosing an Executor:
Often people believe that they have drawn up their will and their work is done here. It is not true as alongside drawing up a will, that person must choose an executor. This person carries out the wishes contained in the will after the person dies! It is a matter of importance, and only a person with experience must be chosen. Also, the executor must be healthier with a higher life expectancy.
Medical Power of Attorney:
A real estate plan does not only deal with monetary belongings. It also deals with the handling of medical matters as well. In this medical power of attorney, a person mentions the name who will take the medical decisions for them when they cannot make decisions for themselves. Having a medical power of attorney eliminates the chances of people getting into conflicts over one’s health.
It is a bit like the Medical Power of Attorney. It focuses on the case when a decision has to be made about how long a person has to be kept alive on a feeding tube or a ventilator. It is a real-estate fact not known by many. When situations like this arise, family and friends have a tough time making the decision.
The Guardians of the Children:
Deciding who will be the children’s guardian when a person dies is also an integral part of the estate plan. If a person does not decide this, the court will do it on their behalf, and this does not prove to be greatly beneficial for the kids.
Questions Asked by Lawyer:
When a person approaches a lawyer for legal help with their estate plan, the lawyer asks some in-depth questions, which no one usually expects. The questions revolve around any relationships you have that you have not yet disclosed and any children you have. Also, a lawyer asks if the genetic material has been frozen for later use.
Estate Plan needs Updating:
Most people work smartly and draw up their estate plans at an early stage. And it is worth appreciating. But these people do not know that an estate plan needs to be reviewed at regular intervals and must be updated. Situations change, and that is why a person must revisit their estate plan every few years.
Leaving Everything to the Spouse:
A common practice among people is that they leave everything for their spouse. This is to make sure that the spouse is provided for when they are not there. It does make sense, but it is not a wise choice to make. People must understand that their spouse might get remarried, and all the assets might go to their new partner.
Minors as Beneficiaries is a Mistake:
Out of love and affection, many people leave everything to their natural heirs, but what happens if they are minors. If a person wishes to name a minor as their beneficiary, they must also work out the guardianship issue because the guardian will take care of the money for the kid.
Gender influences the Real Estate Plan:
Reputable estate plan lawyers ask their clients about gender. They try to ask if their clients are in a gender transition or have already been through it. Surprisingly, this does affect the estate plan. Any mismatches in the documents about gender can create a whole set of new problems.
Pets are a part of the Plan:
While deciding the beneficiary for the monetary belongings and medical decision-maker, one must also consider their pets. What happens to the pets when their owner dies? It does not require a person to set up a whole pet trust, but someone should be named who will take care of the pets after their owner passes away!
These are the ten facts and tips that not everyone knows about real estate planning. As this is an extremely complicated process, a lot must be considered. Unreliable or weak documenting can lead to some severe problems for your families and the actual beneficiaries. It is something everyone must do, irrespective of the size of their estate.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.