Do you have an estate plan? If you don’t, then why not use the New Year as an incentive to get one in place? It’s as good a tactic as any to complete a task you probably know you need to get ticked off.
Here are a couple of things to think about over the next few weeks so you are ready to begin as soon as January comes:
What do you own and what do you owe?
You probably own much more than you think, in terms of the number of items. Start a list and add to it as you remember something else. Even the things that don’t have much financial value are best placed on your list so you can cover everything when you put your plan in writing.
Debts, too, are important to note down. If you will likely be hitting your credit card this Christmas, note down what you currently owe and update it when you are ready to finalize your plan. Debts generally need to be paid by your estate before the remaining assets can be distributed, although some debts may die with you.
Once you have the list, you can start thinking about how you would like to divide your assets between people.
What would happen if you become seriously ill?
What would you like to happen if you suffer a serious accident that leaves you on the verge of death? Would you like medical staff to do all they can to keep you alive, even if you end up reliant on feeding tubes and paid help for the rest of your life? Or would you rather they allow you to die naturally if that is what fate has in store for you?
You can specify your choices in an advance health care directive. You can also appoint a health care power of attorney to make calls for you in conjunction with doctors if you cannot express your choices yourself.
A legal power of attorney is also essential. They can pay bills from your account and complete other necessary tasks if you can’t. If you are married, you can choose your spouse if you wish. Doing so means they can keep the household running without interruption.
Those are just some things to consider when making an estate plan. With legal guidance, you can learn what else you should cover and how best to go about the process.