The majority of people in Arkansas put off estate planning, and it’s easy to understand why. Thinking about what will happen to our loved ones after we die isn’t always an easy topic to breach, leading people to avoid making an estate plan altogether. However, creating a strong plan is the best way to protect your family and loved ones after you pass. To make the process a bit easier, here are some tips to get started.
What to Do Before You Start Making an Estate Plan
It’s true that making an estate plan isn’t always easy. There’s a lot of work involved, but knowing where to start can start you on the right path.
List Your Assets
One reason that many people avoid making an estate plan is that they don’t think that they have enough assets. The truth is that everyone benefits from an estate plan, no matter the size of the estate or number of assets. To begin, make a list of all of your assets, including property, investment and retirement accounts, and bank details. Even personal property can be passed along, so make a list of all of your assets and everything that is important to you. Additionally, keep a list of all of your debts that could impact the value of your estate.
Consider Your Family’s Needs
Your situation can impact the types of estate planning documents you need, so before you worry too much about the details, think about what your family might need after you’re gone. For example, accounting for minor children requires a more in-depth plan than someone with no children.
What Are Your Goals?
Without an estate plan, your assets will be distributed according to Arkansas probate law, which may not align with your wishes. That’s why it’s so important to consider what assets you want to be passed along and to whom. Each person’s goals can differ depending on their marital status, life stage, family dynamics, and outlook. Writing down your goals and financial plans can help you get your thoughts in order before designing an estate plan.
Consult with a Professional
Although you are legally capable of writing a will and other estate planning documents on your own, others require legal assistance to carry out. Not only is a lawyer necessary in some cases, but you can also find that your plan doesn’t actually align with your goals. Understanding state and local laws, such as those regarding probate and estate taxes, can impact the way you create your estate plan.
Getting Started
Although not all estate planning components are right for everyone, there are certain documents that you should create regardless of your financial situation or stage of life.
- A will is one of the most important estate planning documents because it can ease the probate process by providing specific guidelines including naming beneficiaries and an executor.
- Trust assets can be left out of probate altogether and they can be incredibly helpful in providing for your family in case you become incapacitated or pass away unexpectedly.
- A power of attorney can be essential if you have young children. Naming a guardian and ensuring that your children are cared for financially can be a great relief during the estate planning process.
- Consider other estate planning tools, such as charitable giving, life insurance policies, payable on death designations, and others. Your estate planning attorney can help you go over all of your accounts as you go through this process.
How Can an Estate Planning Attorney Help?
Now that you have an idea of what creating an estate plan might entail, it’s time to dive in. If you’re still unsure about where to start, the best place is with an expert by your side. The estate planning law team at L. Jennings Law can assist you by taking a personalized approach to your estate plan. We work with estates of all sizes by creating custom estate plans and utilizing all the tools available. Contact us today to learn more about our estate planning services and how we can help you get started.
