Preparing for your inevitable passing is something that you should avoid neglecting as a person can suddenly pass away due to any number of reasons. To help make this easier on your loved ones, it is important to have an estate plan in place. Otherwise, your loved ones may need to go through the court system or experience other complications as they attempt to settle your final affairs.
Will It Be Difficult To Ensure The Estate Plan Is Followed?
Individuals may assume that there is no guarantee that their estate plan will be followed upon their passing, and this may discourage some people from making an effort to create this important document. However, it is important to be mindful of the fact that an estate plan is a legally binding document. Furthermore, it is possible to appoint a neutral executor to ensure that the directions in the plan are followed.
Is It Possible To Address Debts With An Estate Plan?
Many people will still have considerable debt when they pass away. Depending on the type of debt that is owed, this could make it difficult for individuals to be able to pass on their assets. As a result of this potential problem, you should include plans in your estate plan for resolving any debts that you may leave behind. One option for settling these debts can be to include life insurance coverage that can be used to pay any balances that may remain. Additionally, you can stipulate that some valuable assets be liquidated to settle these balances as there may be assets that your loved ones would not want or be able to afford to maintain.
When Should You Update The Estate Plan That You Have Created?
Every estate plan will need to be regularly updated. This is particularly true for those that make their estate plans when they are younger and in good health as their financial status could change considerably over the years. Yearly updates for the estate plan will be a suitable option for most people, but if your financial status undergoes sudden major changes, you may need to update your estate plan sooner. An example of this type of sudden change can be a person getting divorced or being forced to declare bankruptcy. Fortunately, an estate planning lawyer will be able to assist you with making these changes so that the estate plan will accurately reflect your preferences as well as your current financial situation.
Contact a law firm, such as Kubasta Bickford & Lorenson, S.C., to help with your estate planning.