How to Invest Today

Estate planning is the process of putting a plan together to take care of your family and you assets when you die. No matter how little you may have in assets it is important to have a estate plan in place. Key elements of an estates plan include a will, powers of attorney and possibly trusts. We’ll cover each of these in turn

A will is the first place to start your estate plan. You need to create a list of all of your assets and determine who you would like to receive those assets after your death. Your will is the legal document that lists your assets and who is to receive them. When drafting your will pay special attention to the probate laws of Texas to ensure that your will can be validated in probate court. If your will is disallowed then your property will be distributed without your will and according to Texas probate law. This is not something you want to take the chance of messing up so enlisting the aid of an estate planning attorney is a smart move. They can usually assist you for a reasonable fee.

Next in the process comes the durable power of attorney. A power of attorney allows another person to make decisions on your behalf and a durable power of attorney is a special kind that allows the decisions making authority to continue if you become incapacitates and unable to make decisions for yourself. This is particularly helpful when it comes to making medical decisions and there are specific versions call a health care power of attorney for this purpose.

A living will communicates your intentions regarding health care if you become unable to communicate them on your own. A living will is usually created in tandem with a health care power of attorney. The living will spells out your wishes and the heath care power of attorney allows somebody else to act based upon those wishes.

Trusts – Trusts are legal devices that let you place restrictions on how and when your assets will be distributed upon your death. A great example of establishing a trust is if you want to leave assets to your minor children. You can place those assets in trust and limit the asset dispersal schedule to future ages or events that you deem appropriate. Trusts can also be used as a tax planning device to allow your assets to be transfer by a different path.

There are also significant ways to manage taxes at your time of death. Some of the many tools available to do this include a wide array of trusts (life insurance, remainder, personal residence, etc) and life insurance policies that pay directly to the beneficiary upon death. These vehicles are at the more complicated end of the estate planning spectrum.

Now that you a familiar with some of the estate planning tools available, it is time to start your estate planning process. Step number one is to list out all of your assets whether held just by you or jointly with your spouse. With that list in hand go through every item and choose who should receive each item upon your death. You should also note and items or recipients that you would like to place restrictions or requirements upon. Now it is time to decide if you are going to try and create your estate plan on your own or with the help of a professional.

Estate planning can seem like a daunting undertaking, but knowing that it is very important and taking it one step at a time will help you complete the process. Hiring professionals to help you in the process is also extremely helpful and highly encouraged.