Thinking about life after you’ve passed away is never easy. However, when you do pass, have you thought about your assets and estate and what the process will be like for your beneficiaries? Without a proper will and estate plan, the inheritance process for your beneficiaries can turn into a very stressful situation. If you pass without creating an effective will and estate plan, it can drag out the probate and settlement process of your estate by months or even years.
Although we try to pre-plan as much as possible in life, it’s easy to miss a few things here and there so, to help you cover all the bases, these are a few key areas you’ll want to take a look at.
Plan early and regularly update your will
It’s important to start planning your will and estate well in advance. But don’t just set it and forget it. A will need to be updated every few years or when big changes occur in the family in order to keep the information relevant.
If you’re not already aware there are numerous factors that can affect the nature of your will and you’ll want to make sure you have a contingency plan in place in case…
- someone who is named in your will or is the appointed executor of your will passes away.
- any asset of yours is sold.
- you get divorced or remarry someone.
- your children are now 18 years+ of age or if you have any new children/grandchildren you want to add to the will.
- you purchase a large asset.
Any of these factors and more can affect the timeliness of your beneficiaries receiving their inheritances. It’s critical to keep this information up to date in order to keep the probate process at bay. Also, be sure to be as clear as possible when naming people in your will. Any unclarities will again slow down the probate process for your beneficiaries.
Also, keep in mind these 2 important points…
1. Liquid assets are easier and quicker to manage with inheritances
When you are creating your will and planning your estate, it’s important to remember the value of your liquid assets. If you are likely to owe anything on your estate upon passing, the debt must be paid before any of the estate assets are distributed to your beneficiaries. If you don’t realize that you don’t have enough in liquid assets to cover the debt, it creates more work for your executor. If there is sufficient debt, the executor of your will might have to sell non-liquid assets to cover the debt – assets you may not have intended to be sold at all.
It’s also important to note that there are specific types of assets that don’t have to go through the probate process. These assets provide your beneficiaries with immediate access to the funds you leave behind for them. This is especially important if your family is dependant on the money you leave behind in order to pay bills. If that is the case, you’ll want to have non-probate liquid assets such as life insurance for example as part of your assets left to your beneficiaries.
2. Work with a will and estate planning professional
Will and estate planning shouldn’t be a DIY project. It’s extremely vital to work with someone who effectively knows how to plan a will and estate. If you want to feel 100% confident that your beneficiaries will receive their inheritance in a timely manner, work with our team at Ares Law. We are experts in will and estate planning and we know how to formulate a will and plan your estate so there are limited delays in the inheritance process. We also recommend you meet with your financial advisors and any other advisors you depend on for advice when making major decisions such as this. Don’t leave your family with the stress of settling your estate, call us today at (705) 645–8743 to set a up meeting so we can review your current plan and make sure you have all your bases covered.
