Planning for the future can be an intimidating process as one considers what will happen to personal property and assets after passing away. It is never easy to consider what will happen after death, and this is often why California adults delay the estate planning process. Others may not take action to complete this process because they find that it is too intimidating, or they may not see it as a necessary step for their stage of life.
In reality, estate planning is an important process for individuals in every stage of life. If you do not have a plan in place, there is no time to lose in creating the protections necessary that will allow you to have peace of mind over your future interests. It may help to approach the process of creating an estate plan one step at a time as this may make it less intimidating and overwhelming.
Simplifying the creation of an estate plan
To create an estate plan, you will first need to consider what objectives and goals are most important for you. Do you want to leave assets to loved ones, or do you want to set aside money for the purpose of charitable giving? Regardless of your goals, you may find it helpful to take the following steps as you create your estate plan:
- Take an inventory of all of your assets, especially things you wish to pass to heirs in the future.
- Ensure your estate plan includes documents and plans in the event you face incapacitation due to illness or injury.
- Take appropriate steps to reduce your estate taxes and the taxes your loved ones could face if they inherit assets.
These are simple steps that may help you create a comprehensive estate plan that will provide protection and security long-term. Over time, you may find that certain aspects of your life changed, and this may necessitate changes to your existing plans as well.
Where should you start?
If you are unsure of where to start, it may help to begin with an assessment of your estate, your financial goals and your objectives for your heirs. This step can help you understand the direction you should take with your estate planning efforts and the specific documents you will need for protection and security well into the future.