Have You Checked These Items Off Your Estate Planning To-Do List?

​


​Have you created your estate plan? If not, now may be the time to do so. Many people avoid estate planning because they don’t want to think about their own death. Others think an estate plan isn’t necessary because death isn’t likely. However, even death isn’t probably for you, it’s always possible.
 
Your loved ones could face serious financial and legal difficulties is you pass away without an estate plan or with a plan that is out of date. Your assets could be distributed to the incorrect people. Without your guidance, your loved ones may disagree and argue about how to settle the estate. It’s possible your dependents may face financial challenges.
 
Below is a quick checklist of items to review in your estate plan. If your plan isn’t sufficient or is out of date, now may be the time to take action. A financial professional can also help you conduct a thorough review.

Create a will.
 
A will is the most basic estate planning tool, but it’s also one of the most powerful. You can use it to state which assets should go to which heirs. You can also use your will to state who should care for your minor children after you pass away.
 
If you die without a will, your estate is considered intestate. That means local courts will determine who gets your assets and who becomes guardian to your children. This process can trigger a legal fight among your loved ones and may result in outcomes that don’t align with your wishes. You can avoid this risk by creating a will and keeping it up to date.

Plan for incapacitation.
 
You may think your estate plan is only for what happens after you pass away. However, you can also use it to manage incapacitation, which many people face in the final months or years of their life. Incapacitation is the inability to make or communicate decisions, and it’s often caused by cognitive diseases like Alzheimer’s.
 
You can create documents such as a living will or power of attorney to communicate your wishes and designate someone as your decision-maker. In fact, your power of attorney can pay your bills, manage your investments and make any other financial decision that you can’t make for yourself if you become incapacitated.

Check your beneficiaries.
 
You likely have assets and accounts that have beneficiary designations. Life insurance, annuities, 401(k) plans, IRAs and more all use beneficiaries to transfer assets after the account owner passes away.
 
It’s important to review your beneficiaries periodically to make sure they’re up to date. Beneficiary designations usually can’t be challenged after the account owner passes away. That means if you inadvertently leave a former spouse or other person as a beneficiary on your life insurance, they will likely receive that benefit, even if it’s not what you intended. If you experience any kind of major life change, it’s wise to review your beneficiaries.
 
Ready to review your estate plan? Let’s talk about it. Contact us today at Rex Financial Group. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18086 – 2018/10/1
 

---