A comprehensive estate plan outlines exactly what you want to happen with your assets when you pass away. Some people don’t realize all the work that’s going to go into creating one of these. It’s imperative that you think carefully about every aspect of your life so you can get this set up properly.
Having everything written down can help your personal representative to get your estate handled as quickly as possible. This is likely going to be a considerable help to your loved ones.
Creditor claims against your estate
One thing that most people forget is that creditors can make claims against the estate, so having a plan for this can help to ensure your loved ones get what you intend them to get. Remember, creditors can’t claim assets that are in irrevocable trusts, so that’s one option you have for passing along assets. They also cannot claim funds that were paid directly to your heirs, such as life insurance policy payouts.
Payable on death designations
Checking, savings and other accounts held at financial institutions may have a payable on death designations that dictate who gets the assets when you pass away. These shouldn’t be covered in the estate plan because they’re governed by what’s known as a Totten trust, which is the formal name for the payable on death designation. Including them in your estate plans can create unnecessary confusion.
There are a lot of small details that go into any estate plan. Working with someone who understands your wishes and can help you to convey those in a way that can be upheld after you pass away can be beneficial and help you avoid errors.