There are several items to keep in mind when starting your estate plan, including who to choose as your beneficiaries. The beneficiaries are the people who receive the distribution of your assets after you pass away.
Estate planning
Before you start your estate plan, it may be helpful to create a list of your assets, which can include bank accounts, investments, retirement accounts, real estate, personal property and other items. You will also want to consider your goals, like providing for your family or a cause that is close to you, estate tax planning or quickly distributing your assets.
You can choose to create a will or a trust and can decide in advance who you would like to designate to administer your estate. You should choose an honest, trustworthy person to carry out these responsibilities.
You may also want to execute a power of attorney, which allows someone you appoint to make financial decisions for you. You can also designate a person to make medical decisions for you, if you are unable to.
It’s helpful to periodically review your estate plan to ensure that it still meets your goals and complies with current requirements.
Choosing your beneficiaries
When you are choosing your beneficiaries, you can consider your relationships with your family, friends and others who are important to you. If you are married and have dependent children, you may want to make them your primary beneficiaries, so they are financially taken care of.
If you have siblings, parents or more distant relatives you may choose to include them as well. Estate planning allows you to control the legacy you leave.
