The Basics of Estate Planning (Even If You Don't Think You have an “Estate")
Estate Planning is a means to ensure that those who depend on you financially aren't left with more grief and hardship than necessary. With this estate-planning checklist, you will learn how to prepare so that your loved ones don't have to worry more.
1. Decide who the recipients will be. If something happens to you today, who would benefit from what you will be leaving behind? If you've recently gotten married or divorced, you need to make changes to your bank accounts, life insurance policy, corporate benefits programs, your will, and any other accounts that list a beneficiary.
This assures that your financial dependents, current spouse, next of kin or whomever you wish to be your beneficiary is properly identified.
2. Decide on an estate plan. Having an estate plan can help your loved ones avoid unnecessary legal and financial hassles and expenses, while guaranteeing that your final wishes are carried out as intended. When it comes to an estate plan, here are some factors to think about:
Because life is in a constant state of flux, estate plans should be reviewed every five to seven years. If you don't already have one, meet with an estate-planning professional or a financial advisor for expert advise.
3. Purchase life insurance. You absolutely need life insurance when someone else depends on you financially. With the proceeds from a life insurance policy, your spouse and/or children can continue to meet their everyday expenses and plan for the future, such as college or retirement.
4. Organize yourself and your finances. Create a spreadsheet of all of your accounts, their numbers and locations. Print out a copy and keep it with your will, insurance policies and any other financial documents. Keep a copy in a safe deposit box, your attorney's office and/or a safe at home. If you ever need to update your information, revise all existing versions.
Whether you hire a lawyer, financial advisor or take care of the documents yourself, basic estate planning will ensure that your finances and their allocation are dealt with properly.
At Manulife, we have a wide range of financial solutions to help you in planning how to manage your estate. Give us a call so you could speak to a Manulife Advisor, or click here to reach us.
Sources: MyLifeInsuranceQuotes123.com , lifehappens.org/blog/the-basics-of-estate-planning-even-if-you-dont-think-you-have-an-estate/