As you get older or as your children grow up, the importance of having a good estate plan will likely occur to you. Before you start estate planning, it is a good idea to make sure that you understand all the aspects that go into the creation of an estate plan, and what types of preparation should take place.
Planning your estate takes more than just administrative work. It also requires a great deal of reflection and consideration. It will likely take you some time to decide on the legacy that you want to leave.
Calculating the value of your estate
The first administrative task that is a good idea to take on is the calculation of your net worth. This will help you have a good overview of the types of assets that are in your possession. When calculating your net worth, you should think about retirement assets such as individual retirement accounts (IRAs) and 401ks, as well as collectibles, jewelry and cars. When you have calculated your estate worth, you will then be able to assess whether you will need to pay federal taxes.
Deciding how your wishes will affect your plan
If you would like to pass on your wealth to family members, it will be beneficial to avoid probate whenever possible. This is because the probate process is costly and it will take time before the assets reach your loved ones.
If you are starting to plan your estate in the state of Arizona, it is a good idea to look into the ways in which you can avoid going through probate.
Source: The Balance, “Learn the Steps to Creating a Good Estate Plan,” accessed May 09, 2018