Everyone needs to engage in some type of Estate Planning. Whether the individual happens to live in an apartment and have nothing other than what is contained in those walls, or lives in a mansion and has all sorts of assets, plans for those belongings must be made. Here are some tips on how to get started with the process, and ensure that there is no question of what should be done with those belongings when the owner passes away.
Creating an Inventory
The first thing to do with any estate planning strategy is to take stock of what the individual already has in the way of earthly possessions and assets. Many people find that though their circumstances may be humble, they have more than they realize. Start with making an inventory of everything that is present. This includes clothing, furnishings, books, and certainly any bank accounts that hold varying balances. That inventory will form the basis for making decisions about what should be done with those possessions when the owner no longer has any need for them.
Get Things Appraised
Many people are unaware of the market value associated with the things they possess. For example, a person who does not have any family and lives in a one room apartment may have some older family heirlooms that are quite valuable. Having someone come in to appraise collections, pieces of furniture, and other items could yield some surprising results. At that juncture, the owner can decide to sell those items and use the cash to purchase stocks or establish low-risk investments like acquiring certificates of deposit.
Decide Who Gets What
Now that there is a clear picture of what sort of belongings the owner possesses, the next phase of Estate Planning will focus on who gets what. This is in preparation for creating a last will and testament, or pledging certain assets to be held as part of a trust. After coming up with a rough draft, it pays to see an attorney. The appropriate legal counsel can ensure that the text of the will is in line with current legal standards, and that it is clear in terms of how all earthly possessions should be distributed.
Today is the day to being the estate planning. Doing so will mean less for loved ones to sort out later, and also makes it easier to ensure everything goes where it needs to go.
