Everyone hates the inevitable. We try to steer our thinking, as much as we can, away from death. But this is a sad part of our lives that we all must face and prepare for. That is why it is very important to get the proper estate planning guide for when the time comes. The best thing you can do, even after death, is to control your assets and properties and to make sure that they are being managed and properly distributed according to your wishes.

Estate Planning Guide

There are five important aspects involved in estate planning. These include probate, will, financial assets, revocable trust, and power of attorney. Having a basic understanding of these legalities will help you a lot in securing your assets and achieving a peace of mind, knowing that the ones you will leave behind will not have court problems or any other issues regarding the assets you’ve left for them.

Probate

Basically, probate is the court process wherein the estate of the deceased is settled. This is the role the courts play in the distribution of your assets. So it’s important that you have a basic grasp of probate as part of your estate planning strategy. You must work for a plan that would avoid probate. Because, mind you, probate does not only hurt your wallet, but it also gives a headache to your heirs. Aside from the fact that probate cost will, on an average, cost ten percent of the total value of your estate, there are also associated fees that you need to think of. Not to mention the fact that probate process can take years if you don’t properly use an estate planning guide. So as early as now, find ways to avoid probate at all cost.

Will

Having a will does not mean that you will altogether avoid the probate process. Probate is mandatory if the testator dies with a will. However, a will makes things a lot easier. This will ensure that the wishes of the testator will be followed, with regard to the management and distribution of the properties. It will be easier for the courts too since the testator has already named an executor, the one who will manage the assets. This is speedier and less expensive. It also prevents any possible feud between the heirs. A will does not solve all the problems. It’s only a guide to your estate plans, to make the process less painful and easier.

Beneficiaries of Financial Assets

Any estate planning guide will advise you to name the beneficiaries in advance in your financial assets. This will ensure that the institution or whoever is in charge of the assets will turn over the funds to the named beneficiaries if the account holder dies. If there is a written beneficiary, there is no need to go to court for probate. This will save you money and time. This is why it’s important that you put the beneficiaries of your choice in your life insurance and retirement plan, and other similar accounts such as checking, savings and brokerage accounts.

Revocable Trust

Any good estate planning guide will also tell you there are assets that you cannot name beneficiaries to. These are usually physical assets like cars or homes. This is where revocable trust comes in. Also known as a living trust, a revocable trust helps you avoid the probate process. There are two terms to remember in a revocable trust: the trust (who is the person who set up the document) and the trustees (who are the beneficiaries named therein). In case the owner of the trust dies, the trustees will retain control of the assets and will then eventually transfer the ownership of the same to their name. The transition will go smoothly because the assets are not being transferred from the deceased’s name, but from the trust itself.

Power of Attorney

In proper estate planning, you need to explore two kinds of Power of Attorney. These are Financial Power of Attorney and Medical Power of Attorney. In Financial POA, you will choose the person responsible for handling your financial decisions in case you become physically or mentally incapacitated. This will also allow the person to access and manage hospital bills and other related expenses. In a Medical POA, you will get to write down your decisions regarding your health and medical status in case you become incapacitated.

The abovementioned documents are not the only things you need. It also helps if you discuss these things with your family and loved ones so that they will not get into disagreements and other issues or fight over your assets when the time comes.

No one can tell when “death” will come. The best thing to do is to get ready for it as much as we can. And getting ready involves thorough estate planning. You will definitely need more than an estate planning guide; you’ll need an experienced lawyer to help you.

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