How to Do Estate Planning

Estate planning is not just about taxes. Usually, Americans pay only one half of one percent in federal estate taxes. Everyone needs an estate plan to make sure their assets go where they want them to go after death. Here are some things to think about when doing your estate plan.

Difficulty: Moderate

Instructions

Things You'll Need:

• Lawyer specializing in estate planning

How to Do Estate Planning

1. Don't let the state plan your estate. If you don't have a will, the state you lived in decides what to do with your assets. Make a will.

2. Don't forget the kids. When your children are minors, nominate the person you wish to be their guardian. Do this in your will.

3. Protect your heirs from creditors. If you leave assets to your children, their creditors can attach those assets just the same as if they had earned it. Leave your assets in trusts.

4. Protect your heirs from themselves. If you have a child who is bad with money, set up a trust and appoint someone else to make financial decisions for him which can protect him from his own poor decision making.

5. Take special care if you have a non-traditional family. If you are a gay or lesbian couple, get wills that specify who is to inherit assets. If you don't, relatives will inherit.

6. Don't forget charity. Consider helping the charity of your choice.

7. Start estate planning early, not when you learn you have a terminal disease. It's possible that options are available now that will not be later.

8. Carefully choose an estate planning specialist. There are estate planning attorneys in your area. Check with friends for recommendations.

9. Update your estate plan at regular intervals. Changes happen in our lives. Be sure you address them, so your estate plan is in place when it is needed.

[estatelogic]

on 11/12/2009 Great article. Here's Step #10.

Where you keep your estate documents is just as important as the planning itself. If your family can't find your information, it will be difficult to honor your wishes.

A new alternative for doing this is online. Executor's Resource (www.ExecutorsResource.com) offers this capability through its program EstateLogic. It helps people organize and safely store the important documents and details that will be needed for settlement along with personal legacy information.