It’s going to happen to us all one day. One of the inevitabilities of life is that it is eventually going to end. When it comes to your finances, some might take the nihilistic approach that gathering wealth doesn’t matter in the grand scheme. Realists, however, realize that when they pass they keep having a huge impact on the lives of those around them. Their finances can play a big role in that, for better or for worse. They also realize that the sooner they get the ball rolling, the better.
Don’t leave your loved ones footing the bill
One step that everyone should take now if they’re able, is to get themselves a life insurance policy. Without life insurance, the costs of dealing with your funeral and all the other arrangements that have to be made after you pass will be taken out of your estate or even passed on to your family. You don’t want to be a source of even more loss to them after you’re gone. You might think it’s only older people that have to worry about life insurance, but it can be a lot cheaper if you get a start on it earlier. When you’re older, you’re also more likely to have health issues that can limit your life insurance choices further down the line. Take care of it while it’s still easy.
Make sure it goes where you want it to go
Writing a last will and testament is crucial, as is keeping it updated every time your assets undergo a change. But it’s not enough to have just a will. The process of having it executed is a length one with a lot of legal requirements to be fulfilled. A will has to be proven in the eyes of the law to be the legitimate document that it is. Things like creditors and their rights to any assets or wealth mentioned in the will have to be sorted, too. An executor, like probate lawyers from IRB Law, is worth getting on your side early. The sooner you have someone informed and prepared about your will, the smoother they can make the process for your loved ones. Otherwise, arguments over the execution of the will might even cost the whole worth of it.
Get your prep work done early
To make it even smoother for your will to be executed, you should have a whole estate plan ready. Much like finding your net worth, make an inventory of all your physical items, non-physical wealth, credit cards and debts. If you’re part of any organizations like alumni or charitable groups, list them too as many of them have benefits to offer your loved ones. Look at other accounts like your IRA and 401(k) too, to make sure you’re still happy with your selected beneficiary listings on the documents. Regardless of what a will states, those listings take precedence. It’s a good idea to organize your estate at least once a year.
It’s worth getting your estate in motion now rather than later. Not only do you get peace of mind sooner, but it will cost less and be worth more to get it done now.