Estate Planning 101
Have you ever thought about what your wishes should something happen to you? Do you own property- car, jewelry, house, boat, savings account, bonds, investments, etc? Have family or loved ones?
Basic estate planning is important in any stage in life because it addresses key elements of your life plan. If you aren't sure if you have a life plan, estate planning is about asking the questions that reveal what your life plan may be.
There are several elements to estate planning but an important first step is to write down and think about the property or assets you may own. Whether you own property or your finances are tied into loans for your property, an estate plan addresses what your wishes are regarding your property or who you wish to manage your finances should something ever happen to you.
When you are making a list of the things you own don't forget to include any digital property you own such as web pages, web accounts, or businesses- we are living in a digital era and most people have several accounts that they use on the internet- Facebook, LinkedIn, Myspace, Twitter, Ecrate, Ebay, the list of possibilities is endless but all of these accounts constitute your digital identity and should be included in your list of assets.
The other elements of an estate plan will include health care proxy, power of attorney, living will, will, and or trusts. These are the plans where you implement the steps to be taken in the event that you become incapacitated or in the event of your death.
Health care proxy for example will ensure that a person of your choosing will carry out your medical wishes should you be unable to do so. A living will is an extension of the health care proxy. Where the health care proxy is the person you choose to oversee your medical care, your living will is your health care directive which tells people what you choose for medical treatments.
Trusts are another way of ensuring that your wishes regarding your assets are carried out. In short they are way to place stipulations on your assets but also give you a way to help loved ones avoid larger taxes on your estate. Lastly, a will is a document or device that lets your wishes known regarding all your property and finances as well as guardianship of any minor children.
While all of things can be beneficial estate planning is personal and so you can choose which aspects you prefer to utilizing according to what is best for you. You may consider it morbid to consider this aspect of your life but estate planning is necessary and important especially if you have preferences regarding your assets.
Food for thought.....
Estate planning is done with your family lawyer to solidify your wishes legally. As we move further into the era of digital everything consider some non traditional services to extend and enhance your estate planning needs beyond those that your lawyer or legal adviser may offer.
My Digital Afterlife is one service that allows you to store contacts, accounts, personal letters, video, or documents can allow you to prepare basic elements and allow you to combine your traditional estate planning with modern online choices for a holistic and complete approach.
