As a new parent, you will need to make many decisions about the future of your family. One of these is estate planning. However, this task is not always easy, especially considering that any mistakes in estate planning can be catastrophic. To boost your chances of creating a successful plan, consider the following points.
Who the estate executor will be
An estate executor is responsible for making sure that your estate plan works as expected. This includes making sure that your estate gets distributed in the way you intended. You may appoint someone close to you, but this person should have no personal interest in what happens with your estate after death. This is important because if there are any disagreements within the family about your estate, an impartial estate executor will help to resolve the issue.
Whether you have life insurance or not
Life insurance is necessary for estate planning as it provides a source of money to cover the deceased’s final expenses, such as funeral costs and estate taxes, as well as a source of income for surviving dependents.
Having a good life insurance policy will ensure that your dependents are financially stable after death. This means taking into consideration what will happen with any student loans or other debt once they inherit everything from your estate.
Whether you’ve accounted for all your assets and taxes
It is important to make sure that all your estate’s assets are accurate and accounted for, including taxes. This is because estate taxes are usually calculated by the estate’s value, which includes all assets, including property, cash savings and investment accounts, that you own at your death. You don’t want your beneficiaries to face any surprises in the form of estate taxes or previously unknown estate assets at the time of your death.
If you’ve not made estate planning a priority, it is time to consider this important task and take the necessary steps forward. The considerations above are some of the most important ones in this process, so always keep them in mind.