Many people put off estate planning because they view it as a complicated task that reminds them of an unpleasant event that will happen in their future. However, estate planning is very important to complete for those who have dependent children or a spouse that depends on their income. Taking care of your estate planning can be accomplished in a short amount of time with a little effort and will provide your family with financial protection in the event that the unthinkable happens. Here are some tips that will make estate planning easy.
Create An Accounts List
One of the most important pieces of information to have for estate planning is a list of all of the accounts you hold in your name. This list should hold all of the information needed for whomever is responsible for cleaning up your estate after you pass away so they can properly close out your accounts and obtain any and all account balances you might have. This information should include a complete list of benefits anyone is entitled to upon your death, a list of all debts and assets, and a detailed description of how to handle any business assets you may have. For most people, the creation of this list can be completed in a couple of hours.
Create A Will
A will is an important piece of information that ensures that the right people will receive your possessions when you pass away. If there are any personal items that you would like to go to a specific person, a will is the place to dictate those instructions. If there is no will found when a person is deceased, it falls to the family or the court to divide the possessions amongst those who come forward with a claim, which could become a contentious issue even in the best of cases. To avoid putting this burden on your family, write out a will, or use one of the numerous legal websites that offer a template for a will, and get it notarized my a notary public before storing it in a safe place, like a safe or safe deposit box.
Obtain Term Life Insurance
If you have dependent children or someone who depends on your income to keep themselves fed and clothed, it is important to have life insurance that would replace your income for a period of time if you were to pass away unexpectedly. A term life insurance policy with a term long enough for your children to become independent, or for your spouse to find another source of income, would be a sufficient amount of insurance to take care of your current obligations. Some insurance salespeople would be happy to sell you much more insurance than you truly need, but an amount that equals a few years of your salary is generally sufficient.