7 Things to consider while estate planning

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By: Anna Sweeting
on 21st Jul,2011

If one of your kids wants to settle down in your ancestral home that you had inherited, then will that property to him.
7 Things to consider while estate planning

If you're a parent, then you'll always want you kids to be happy and won't want them to go through any trouble.  Planning and managing your estate is one of the things that you shouldn't neglect if you want your kids to not fall into any kind of trouble after you're no more.

Here are 7 things which you should consider while estate planning:  

1. Make a will for your heirs: Your family will have to depend upon the court in order to get hold of your assets if you don't leave back a will. So, make sure you draw up a will with the help of your attorney, declare your beneficiaries and let others know how you want to distribute your assets. 

2. Manage smartly: When you decide to go for estate planning, be smart. If you have a child who cannot manage his/her finances, then put the money in a trust that you want him/her to inherit. If one of your kids wants to settle down in your ancestral home that you had inherited, then will that property to him. Distribute your assets in such a way that your kids from the first marriage, if any, are not deprived. Also, take into consideration the tax consequences that your heirs may have to face when they inherit your monies.

3. List the details: You should maintain a diary or a notebook where you should include the details regarding your estate planning. You should write down where you have kept your will and power of attorney, mention the place where you keep the key to your safety box, the combination to your safe and the pass codes for your email, etc. This will make things easier for your children after your death. 

4. Update your address book regularly: You should list the contact details of all the important people in your life. It may be a long lost friend whom you suddenly met in the market after years or your accountant. It will make things easier for your heirs when they are dividing your assets when you're no longer present to guide them.

5. Go for a medical power of attorney: Sign a medical power of attorney in the name of a person whom you trust most. It can be your spouse, cousin or any of your kids. It's far better for you as well as the people who love you if they need to make critical decisions about any treatment for pain or any other medical emergency related to your health.

6. Take the toughest call asap: You have the right to decide whether you want to be buried or cremated. You can inform your heirs about the same so that they can fulfill your desire when you're no more.

7. Keep all your important papers handy: The title to the house and the car, paperwork for annuities, insurance policies, pensions, savings bonds, CDs, bank accounts, etc., are important documents. You should keep them handy which will make life much easier for the people you leave behind.

Last but not the least, you should always tell your near and dear ones how much you love them! Before it's too late, let them know how much you care for them and want them to be successful in life. This will not only make them feel good but also make them love you all the more.

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