Death is inevitable and no matter how you feel about it, it will the family left behind who will manage "your estate." Now, the word can evoke succession Downton Abbey images or capital of an oil baron, but if you leave anything behind, which is your "estate".
The key is to ensure that those who depend on you financially are not left with more pain and difficulties 
1. Decide who the beneficiaries will be. If you died today, who would be your recipients that you leave behind? If you recently got married or divorced, you must make changes to your bank accounts, will, the life insurance policy, 401Ks, IRAs, corporate benefits programs, and any other account that the list of 'a recipient. This ensures that your financial burden, current spouse, close relative or want you to be your beneficiary is properly listed.
2. Decide on a succession plan. Having an estate plan can help your family avoid the hassle and unnecessary legal and financial costs, while ensuring that your wishes are carried out as planned. Regarding a succession plan, here are some factors to think about:
- Have you created a will? To be precise, which takes possession of your property / assets when you die. You do not have to hire a lawyer to create a will; You can do it yourself. There are professional sites online that can help you create a set.
- Do you have a living will or power of attorney? An advanced directive or living will, the details of your wishes for end of life care. For example, if you are in a car accident resulting in a vegetative state requiring life support, a living will determines whether or not your designated representative may "pull the plug."
- Who has power? a person who can make decisions for you if you are in a position where you are unable or unavailable to do so. This includes signing legal documents and process all your financial and legal affairs. This can be a real lawyer or a friend or family member that you have deemed appropriate.
- Who will take care of your children? If you are a parent, you need to think about guardianship and decide who will care for your children if you and your spouse die.
- do you have a revocable trust? also known as a living trust, the coordinates of a revocable trust who your heirs; However, unlike a will, it can not be challenged in court. While a living trust determines who will receive your assets upon your death, until then, the owner retains full control of the asset.
- Or if you have an irrevocable trust? irrevocable trusts their own legal entities. If you need to remove individual assets from your estate for tax purposes, you can put them in an irrevocable trust, which in essence becomes the owner of these assets.
Because life is in a constant state of flux, succession plans should be reviewed every five to seven years. If you do not already have one, you may experience a professional estate planning for a free consultation.
3. purchasing life insurance.
You absolutely need life insurance when someone depends on you financially. With the proceeds of a life insurance policy, your spouse and / or children can continue to meet their daily expenses and plan for the future, like college or retirement. Term life insurance is an inexpensive safety net. Here are some questions you should ask yourself before purchasing a policy:
- How many and what type of insurance do I need
- How long of a term is necessary ? Should it be permanent?
- Can I keep my life insurance through my employer if I lose my job, resignation or retirement?
- How much can I afford to pay and how can I get affordable rates?
additionally, you'll want to consider disability insurance if you get sick or injured and unable to work.
4. You and finances organized.
Create a spreadsheet of all your accounts, their number and location. Print a copy and keep it with your will, insurance policies and other financial documents. Keep a copy in a safe, office your lawyer and / or a safe home. If you need to update your information, review all the existing versions.
Whether you hire an attorney, financial advisor or care documents yourself, basic estate planning will ensure that your finances and distribution are handled properly.
Have you gone through the estate planning process writes a will, life insurance purchased or set up a trust? If so, what advice do you have for other families financially responsible?
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