Your estate plan lets your loved ones know what you want to happen with your assets when you pass away. It may also contain instructions that will come into the picture before you die. It’s imperative that you set the estate plan up carefully.
You also need to take the time to review it periodically so that it always reflects your wishes. If you notice anything that isn’t correct, you should correct it as quickly as possible. This ensures that it’s ready if something happens to you and it’s needed.
Plan for any unpaid taxes
You may have heard about estate and inheritance taxes, but there’s another tax that you may have to consider. If there is income in your estate that hasn’t yet been taxed, your estate will have to cover those taxes. This is known as income in respect of a decedent. It might significantly cut down on what your heirs receive, so try to plan for this possibility.
Make medical plans
If you have any plans about what types of medical care you want to accept and what you don’t want to go through in your final days, you should put those in writing. These instructions should also be filed with your doctors and the medical facilities where you’re likely going to receive care. You should also discuss these plans with your medical power of attorney — and make sure they have a copy.
Anyone who’s setting up their estate plan should ensure they understand how to convey their wishes. This is critical because your estate plan is the only direction they’ll have besides simply following the state’s intestate laws. Working with someone familiar with estate planning laws can help to make this a bit easier.
