Assemble a Paper Trial, Avoid Confusion
Thinking about death is never easy. However, refusing to plan for your death and create a will or trust, will only leave your heirs a costly mess to figure out. According to a survey by Lawyers.com only 65% of Amercians do not have a will. Having a simple will can avoid numerous expenses. For example, if you die intestate, without a will, the state will appoint a conservator and possibly lawyers to determine who will inherit your assets - a simple will can avoid these costs, leaving more to your family and loved ones. It is also crucial to keep your will up to date - this should be done every 5 years or after any major life event. Here are some important documents that should be looked at:
1. The beneficiary designation form. - This form determines who will inherit your insurance and retirement policies. These are called contract assets as opposed to financial assets. This form can also override a will.
2. Health care proxies and guardianship. - These are two high priority documents because they address the issue of incapacitation and who will care for your children after your death.
3. Balance sheet. - Do not waste your efforts on making it impossible for your family to find the documents you prepared. Draw up a balance sheet that lists the basic information about your assets. It may also be useful to file a letter of intent. Although the letter has no legal standing, it can provide some guidance to your heirs.
If you would like to read more on this topic see Guide Your Heirs Now, Avoid Confusion Later.
Wills, trusts, power of attorneys, health care proxies, etc. are all legal documents that are highly relevant to how your estate will be handled after your death. Contact an Estate Planning Attorney to provide guidance on your drafting and to help avoid confusion to your heirs after your death.
