An estate plan is worth having if you have assets that you want to be distributed to your heirs after your demise. You can use a living trust, will, or both to declare how you wish to have your wealth passed to your spouse, kids, or loved ones when you die. When a parent or breadwinner dies without an estate plan, succession and wealth distribution can be chaotic for the family or loved ones they leave behind. Here are some important estate planning tools to consider:
Create a Power of Attorney
If chronic sickness or severe injuries cause someone to be mentally incapacitated, it’s impossible for them to dictate their financial affairs. Creating a power of attorney lets you assign this responsibility to an individual with your best interests in mind in case you’re mentally incapacitated. This document can be very useful when you don’t have a trustworthy adult, such as a spouse, to take care of you and your interests while you are incapacitated.
Write a Will
Everyone should write a will that expresses their wishes after their death. The legal document is easy to create and can help coordinate the distribution of your properties, including your home, bank balances, stocks, and other funds or investments. You can also use the document to appoint guardians for any minors you leave behind. If need be, you can include an individual in your will to make key decisions on your behalfs, such as those pertaining to your finances or healthcare. People need to write wills so that, when they die, the state won’t distribute their assets on their behalf.
Have a Living Trust
You can also include a living trust in your estate plan. This instrument enables you to take care of your minor children’s interests, such as their education, upkeep, welfare, allowances, and other forms of financial support that they might need after you pass away. The trust will pass the indicated benefits to your children immediately after you die, as there will be no probate period.
Why Bother Having an Estate Plan?
Passing away without an estate plan automatically gives the state the authority to distribute your assets, denying you or your loved ones any meaningful control over the entire process. You don’t have to be wealthy to need a will, trust, or an estate. Even if you only had an IRA/Roth IRA or 401k retirement fund, a life insurance plan, or a little equity in a home—these are substantial investments for which you should dictate the way they’re to be passed to your dependents after your demise. An estate plan is your chance to determine the smooth and fair distribution of your properties in the future.
Your house is one such valuable asset that you should include in your estate plan, even if you haven’t paid off your mortgage yet. If you’re interested in getting a home loan today, contact our experts at Northeastern Group, LTD. We can help you purchase your dream home with the right mortgage package in New York.
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