Choosing your estate executor doesn't just mean naming your firstborn child. Many people do this, and it's not necessarily wrong in all cases, but don't assume you have to do so. What you really need to do is consider each potential executor's individual personality and skills so that you can pick the right person for the job.
As you do your estate planning, one of your main goals may be to reduce the odds that your heirs will get into a dispute over the money. That's wise. These are the types of arguments that can make it so that siblings do not talk to each other for the rest of their lives.
People often neglect their estate planning because they essentially do not want to do it. It does not sound simple, it feels overwhelming, they don't like doing paperwork and it feels like an obligation, not something they're excited about. And so they put it off for another day, and another, and another.
The Baby Boomers are hitting retirement age at an even greater rate than many people realize. Did you know that every single day over 10,000 people from this generation turn 65 years of age? That's an average, of course, but it still shows just how quickly they're hitting some very important milestones.
Have you always assumed that you and your spouse need separate wills? You make all of your financial decisions together now, but you understand that one of you is most likely going to pass away before the other. You believe this means you both need a will so that the remaining party has their own estate plan in place.
Estate planning typically starts with physical assets, and people often begin with the biggest ones (the house) and work their way down. They may also make plans for financial assets that, while they don't hold them in a tangible form, they still control. This could include an investment portfolio, for instance.
When getting started with your estate planning, it is wise to break down some of the main terms and ideas so that you can know what options you have. Today we will take a look at the difference between an estate executor and a power of attorney.
You know that you're not legally obligated to leave your possessions to your heirs, and you can disinherit people who expect to get money or other assets from you in your estate plan. But does that right extend to your spouse? Can you cut your husband or your wife out of the estate plan?
Your family home is worth $250,000, but you want to essentially give it to one of your children. You have now moved out, and you live in a nursing home anyway, so it seems like a good idea to pass it on independent of your other estate planning. That is to say, you're not going to wait for it to go to your heirs with the rest of the estate.
When you create your estate plan, you pick an executor. It's one thing to write out the plan, but you must remember that you won't be around to put it into action, so you need someone to do that on your behalf. You want to talk to them first and make sure they're up for the job.