Do you ever think about what happens after death? Chances are, it’s not a thought you will enjoy. It might even be a little scary. After all, it’s easy to put off – particularly when life gets busy or the topic just feels… uncomfortable. But spending a little time planning now makes an enormous difference for the people left behind.
Roughly seven-in-ten Americans haven’t planned ahead. You don’t want to be one of them, do you?
Without a plan, family members may have to make the difficult decisions. They do that while dealing with grief. And that’s not ideal. Having everything in place helps reduce confusion, avoids unnecessary delays, and makes it much easier for loved ones to carry out your wishes.
Keep reading on to learn a few practical steps that’ll help in this situation.
Draft a Last Will and Testament
A will is one of the most important documents a person can have. It sets out who should receive assets, who will handle the estate, and, if there are minor children, who should take care of them.
Without a valid will, everything is uncertain. State law decides how property is divided. Those decisions might not reflect what the person actually wanted. Even a straightforward estate could become more complicated when there are no written instructions to follow.
For anyone beginning to think about estate planning in Florida or another state, create a will. This is often one of the first and more valuable steps. It provides clear guidance. It also gives your family members one less thing to worry about during an already emotional time.
Select Beneficiaries
Some assets don’t pass through a will at all. Life insurance policies. Retirement accounts. Certain financial accounts. All of these are usually transferred directly to the beneficiaries named on those accounts.
That’s why you must review beneficiary designations every few years. This is especially crucial after major life events – births, marriages, and divorces, primarily. An outdated beneficiary leads to unexpected results, even if a will says something different.
Keep these designations current. Doing so will help make sure assets end up with the people they were intended for.
Organize Important Documents
When someone passes away, paperwork has a way of becoming… urgent. That’s a simple way of putting it, anyway. Family members typically need access to legal documents, financial records, insurance information, account details, and property records. Sometimes, they need access to these items within days.
Have everything organized in one secure location. This will save a great deal of time and frustration. It’s a good idea to let a trusted family member or executor know where those documents are kept, too. As a result, they won’t be left searching during an already stressful period.
A simple folder or secure digital file makes the entire process much, much smoother.
Utilize POD/TOD Accounts
Payable-on-Death (POD) and Transfer-on-Death (TOD) designations are simple tools that will make transferring specific assets much easier.
These accounts allow money or investments to pass directly to a named beneficiary without going through probate. That usually means beneficiaries will access those assets more quickly, with fewer legal hurdles.
Not every account qualifies for a POD or TOD designation, though. When they are available, they are a useful addition to an overall estate plan.
To conclude, planning ahead isn’t about expecting the worst. It’s just about making life a little easier for the people you love. And that’s what this article will help you do, so keep these tips in mind when planning for the future.
