When drafting a Will or creating a trust, you should take into account the implications of how you plan every asset you own. Proper estate planning is important because, without it, your assets and wealth can end up in the hands of people or organizations you never want to have a hold of them. For instance, your assets could be given to unwanted family members if you have no will in place due to intestacy laws. Also, some of your assets might be distributed differently. With the help of an experienced estate planning in Ridgeland, you can make a sound estate plan that ensures your possessions are passed to your designated individuals or entities. They can guide you through each step of the process to make sure you make smart decisions. When you make an estate plan, the following are assets you must take into consideration:
One of the most important assets you must include in your plan is your existing balance. Your will can include how your funeral expenses, medical bills, and probate costs are paid. If your bank account can be used for these expenses, a retirement account beneficiary may be able to use such funds instead. Also, if you have outstanding debts that impact your bank accounts, speak with your lawyer to protect your heirs from the burden of debt following your death. Other important considerations when making an estate plan include checking accounts, saving accounts, and money market accounts.
After you pass away, who will get your house? Do you want a family member to inherit it? Or do you want certain family members to share it? You must consider this matter if you have a spouse, many children, and an ex-spouse. Also, if your house is still not fully paid, consider how the mortgage and assets will be handled. Can your life insurance pay off the mortgage? Do you and your spouse own the house with rights of survivorship?
In addition, you might want to consider holding the house in trust. This way, your house cannot be sold, or your heirs can gain its value in the distant future instead of immediately following your passing.
Your assets may also include bonds, stocks, and mutual funds outside of your retirement accounts. You must decide how such assets will be allocated. Do you want to be distributed among your beneficiaries or allocated to a specific person?
Estate planning must also address any business ownership, no matter how small it is. State who will inherit the business when you die. This can prevent tension among your loved ones and business partners as well as ensure a smoother ownership transition.