A will is the most basic element of estate planning. It allows you to designate who will inherit your property after you die. While a will is an important part of any estate plan, it is just the beginning. There are many other things you should do to make sure your loved ones are taken care of after you're gone. Here are some of the other essential elements of estate planning and what to know.
Beneficiaries Are More Important
When it comes to estate planning, most people focus on creating a will. However, beneficiaries are more important than the will itself. This is because the beneficiaries are the ones who will receive your assets after you die. As such, it is important to carefully consider who you want to include as a beneficiary. You may want to consider your spouse, children, close family members, or even a charitable organization.
It is also important to review your beneficiary list periodically, as your circumstances may change over time. For example, you may get divorced or have a child later in life. As a result, your beneficiary list should be viewed as a living document that can be updated as needed. Therefore, while a will is an important part of estate planning, the beneficiaries are ultimately more important.
A Will Needs to Go Through Probate
A will is just the bare minimum of estate planning for another reason. A will needs to go through a verification process known as probate. The process can take months, and if there are any errors in the will, it can be further delayed. Probate is also a public process, so your financial affairs could become public knowledge.
In addition, the costs of probate can eat up a significant portion of your estate. For all these reasons, it's important to do more than just prepare a will. You should also create a trust, which can help your loved ones avoid probate altogether. With proper estate planning, you can ensure that your wishes are carried out seamlessly and efficiently, without any stress or delay.
There Are More Ways Than a Will
The final reason is that a will does not address all types of assets. For example, retirement accounts and life insurance policies generally are not governed by a will but instead pass to the named beneficiaries. Beyond that, there are other options for estate planning beyond just a will, like trusts. Don't think that a will is enough, there is a lot more to consider than just a will when estate planning.
Estate planning is something few people look forward to, but it is something we all must do. Don’t be fooled into thinking a will is all you need. Be sure you understand what else is involved in estate planning beyond a simple will.
Did you enjoy reading this article? Here’s more to read: Estate Planning Moves That Are Easier Than You Think
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