Determining how you will create a legacy for your family starts with creating an estate plan. This type of financial plan is key to protecting your assets for the future. Estate plans are not limited to those that are extremely wealthy. In fact, everyone can and should implement an estate strategy into their financial plan in order to figure out who will manage your affairs should you no longer be able to and who will become beneficiaries of your assets when you pass away. If you would like to learn more about the basics of implementing an estate strategy, keep reading!
Determine Your Goals
With an estate strategy, you begin to outline your goals in a manner that will benefit your family later on. Eventually, you will be leaving your assets behind, so the best thing you can do is have a plan for them. You will want to determine exactly who will be responsible for what, if your beneficiaries have or will have specific needs that you would like to take care of.
Power of Attorney
A power of attorney is a legal document that helps you prepare for the future when planning what to do with your financial affairs. Should you become unable to manage your assets, the power of attorney that you elect has the legal right to determine what to do with your finances and make decisions on your behalf. Typically, power of attorneys are family members or even close friends that you grant the power to early on just in case you end up being unable to make conscious decisions. We highly recommend having a power of attorney involved with your estate plan, as it can be essential in the case of an emergency.
We have mentioned the word “beneficiaries” in this article above, however, it is important to know exactly what a beneficiary is and how you can name them. Should you have assets that require beneficiaries to be named, it is essential to make sure your assets are in good hands. Beneficiaries are those that inherit assets on your behalf. As you have worked hard for your assets, you want to make sure they end up in good hands, which can be a daunting, yet very personal task that should be taken on early to prevent any delays in planning.
While we know that estate strategies can be quite complex, they are great to have in place. Once your estate strategy is established, you will feel better knowing that should any kind of emergency take place leaving you unable to make decisions regarding your assets by yourself, that your assets and belongings are in the hands of the people you chose and according to the plan you put in place.
If you would like to learn more about estate planning, visit our website here. Should you have any questions regarding your current estate strategy, we would be happy to help guide you along the way. Give us a call at (301) 907-9790