Estate planning is critical to securing one's financial future and ensuring that your loved ones are taken care of after you're gone. However, not all steps towards a comprehensive estate plan require a lawyer.
If you're looking for ways to get a head start, here are three actionable steps you can take today:
1. Retitle Your Bank Accounts
For many of us, bank accounts were set up years, if not decades, ago. Over time, it's easy to lose track of how these accounts were initially structured. However, the titling of your bank accounts can play a significant role in avoiding the cumbersome probate process.
Here's what you can do:
- Beneficiary Designations: Update or set up a 'Transfer on Death' (TOD) designation on your accounts. This ensures that assets within that account are directly transferred to the named beneficiary upon your death, circumventing the expensive and time-consuming probate process.
- Joint Accounts: Consider setting up joint accounts if you trust someone implicitly, often a spouse. This allows the joint holder access to funds immediately after your death.
2. Review Beneficiary Information On a Regular Basis
Life is constantly evolving. Change is inevitable, from marriages and births to divorces and other significant life events. These changes, however, can impact how you wish your assets to be distributed.
Stay proactive by:
- Regularly review and update beneficiary information on life insurance policies, bank accounts, retirement portfolios, and other accounts with beneficiary designations.
- Ensuring that your beneficiary designations align with your current wishes and life circumstances.
3. Take Inventory of Your Assets and Accounts
Knowledge is power. You can't effectively plan for the future if you don't have a clear understanding of what you own. An essential step in estate planning is to take stock of what you have and where you want it to go.
Make it a point to:
- Create a detailed inventory list of your assets. This includes real estate, vehicles, jewellery, stocks, and more.
- Regularly update this inventory as you acquire or divest assets.
Ensure that your estate distribution plans reflect your current wishes. This can be a foundation for a more detailed plan you might establish with an experienced local estate planning lawyer in the future.
Conclusion:
While these steps are a fantastic starting point, comprehensive estate planning often requires the expertise and guidance of a seasoned Tallahassee estate planning lawyer. Once you've taken these initial steps, consider consulting with a local estate planning attorney to ensure your legacy is protected and your wishes are fully realized.
