Setting up an estate plan is something you should not put off, no matter your age. An estate plan protects your financial interests and ensures your assets are passed down to the heirs you choose after you pass away.
A comprehensive estate plan often involves more than just a will. There are various other documents you choose to make part of your estate plan, such as a trust or power of attorney.
When you are ready to start creating your Florida estate plan, here are some basic steps to take.
Create an inventory list
Many people believe that they do not have enough property to make estate planning worth it. However, most people have more property than they believe.
Property that is generally included in an estate plan includes real property, such real estate or land, and personal property, such as vehicles and household items. Property also includes financial assets such as bank accounts, investments, retirement plans and insurance policies.
Draft a will
Once you have your inventory list completed, have a will drafted. Florida imposes certain requirements for a will to be legally valid.
The will must be in writing and signed by yourself while in the presence of at least two witnesses. Florida does not allow oral wills.
You and your witnesses must be competent. This means being 18 or over and being of sound mind. Although you can choose anyone to be a witness, it is typically better if the witnesses are not people named in the will, to avoid potential undue influence claims in the future.
If you have children, you can also name a guardian for your children in the will. This is an individual who will assume all legal responsibilities for your children if you pass away. You may want to appoint a backup guardian, depending on your situation.
Consider a trust
A trust is another component of an estate plan that might be appropriate. Setting up a trust involves placing all assets in the trust and choosing a trustee to manage the assets for your beneficiaries.
Trusts can be revocable or irrevocable. Revocable trusts can usually be modified or revoked in your lifetime, while irrevocable trusts cannot.
When your assets are in a trust, they automatically pass to your beneficiaries upon your passing and avoid probate.
Other pieces of an estate plan you may want to consider include medical or financial power of attorneys. These documents allow someone you select to make major medical or financial decisions for you if you become incapacitates.
Conduct a final review
Finally, review any other accounts or insurance policies you have that include beneficiary designations. Ensure the correct beneficiaries are chosen. Do not leave a beneficiary designation blank, since that usually means the account will go through probate.
Having help and guidance from a professional is valuable when setting up an estate plan. A properly designed estate plan allows your assets to be passed down to heirs and beneficiaries in a way that minimizes gift and estate taxes. You will be left with peace of mind knowing that your loved ones will be properly taken care off after you are gone.