Estate planning might not seem like a big deal if you do not see an immediate need, but waiting too long to start something could have costly repercussions. According to U.S. News, a staggering 56% of Americans do not have an estate plan.
Proactive planning can help you prepare for the future, as well as provide support to the people you care about. Once finalized, you will want to periodically update your plan throughout your life.
Identify your obligations
An estate plan can provide instrumental support to the people you care about, particularly, people who rely on you for support. This may include children, grandchildren, your spouse or a disabled family member. Identifying who relies on your income for necessities may give your estate plan a lot more meaning.
Understand estate laws
Laws regarding estate planning will vary from state to state. The taxes your surviving family members will need to satisfy could drastically reduce the value of your assets to them. However, if you make adequate preparations now, you can minimize what they will need to pay.
Take inventory of your assets
Take a comprehensive look at the assets you have. This could include real estate investments, retirement portfolios, bank accounts and business assets. Make sure everything you own has its place in your estate plan.
Making preparations now can give you more control over the protection and use of your assets. You can also have peace of mind that your legacy will receive the attention you wish and that your plan will continue to sustain your loved ones after your death.