Estate Planning Tips for the Middle-Aged Generation
It is quite disturbing to note that most middle-aged individuals do not have an up-to-date estate plan for various reasons. The disadvantage is that you may deny yourself peace of mind if you fail to prepare a concise estate plan to protect yourself and your loved ones. In the event of an accident or illness, you may also confuse prospective beneficiaries if you fail to prepare an estate plan in advance.
The reason is that without insight regarding your wishes through the guidance of an estate plan, your beneficiaries may throw all your expectations into disarray. Here are a few estate planning tips for the middle-aged generation.
Prepare A Will
A will is one of the most important documents that any middle-aged parent needs to prepare to safeguard the future of their children. The absence of a will compels state laws to dictate those who should get a share of your estate, as well as those who will act as guardians if your children are underage. Preparing a will gives you the power to dictate the beneficiaries of your estate, and to define appropriate guardians that should step in when necessary until your children become of age.
Remember that making a will when you are still in good health is a wise idea.
Select A Qualified Executor
An ideal estate plan is never complete without details of the intended executor responsible for clearing any pending debts, and distributing your property as per the information in your will. Most individuals opt to include their spouses as executors when preparing an estate plan which is okay. However, lengthy and complicated estate settling procedures will demand the involvement of experts.
So, if that is the case, opt for a certified public accountant or trustworthy advisers with the necessary experience as your preferred executors.
Consider The Annual Gift Tax Exclusion
It is needless to say that you need your beneficiaries to enjoy maximum benefits when preparing your estate plan. It is wise to establish the amount you need to give to specific individuals every year as a tax-free gift. As a result, you will reduce the future estate costs that may affect the benefits you wish to transfer to your loved ones.