Creating an estate plan is a great way to secure your legacy and provide for your loved ones when you’re unable to do so. But if you’ve never created one, the process can easily feel overwhelming. Understanding the steps you’ll need to take before you meet with your Illinois estate planning attorney can help you be better prepared for your appointment.
The Essential Steps to Take When Creating an Estate Plan
Though everyone’s estate plan will be unique, there are a few steps you’ll want to follow as you create your plan. Here are the seven essential steps you’ll need to take.
1. Take Inventory
Before your appointment, take the time to conduct a thorough inventory of your estate. You’ll want to make a note of any assets you want to include in your plan. This may include your home and other properties, artwork, jewelry, investments, retirement accounts, and other similar items.
The more assets you include in your estate plan, the easier it will be to ensure that all of your property goes to the people you want it to.
2. Create a Will
Once you have your inventory, you’ll want to create a detailed will. Your will gives you a chance to specify who you want to receive which assets and how you want your estate managed after you pass. This document will change as your circumstances and lifestyle change, so be sure to review it regularly.
3. Establish a Trust
Trusts can help your loved ones avoid costly estate taxes and a lengthy probate process. If you have multiple beneficiaries or want to provide for your loved ones in a way that could cost them less in the future, establishing a trust can be a good option. Your Illinois estate planning attorney can help you with the process.
4. Choose and Review Your Beneficiaries
Your beneficiaries are the people you want to receive your assets. Think about who you want to inherit parts of your estate and consider how much of your estate you want to leave to each person. Review your list of beneficiaries and make changes as needed. If you get divorced, have a child or grandchild, or get married, your beneficiaries may need to change.
5. Establish a Power of Attorney
Power of attorney gives someone you trust the right to manage your affairs on your behalf if you’re unable to do so yourself. You can choose a medical power of attorney to give someone the right to make medical decisions if you’re incapacitated and a general power of attorney to oversee your estate. Many people choose a close friend, their children, or even their spouse. As a general rule, it should be someone you trust implicitly.
6. Be Mindful of Taxes
Certain parts of your estate could be subject to taxes when you pass away. Consider the tax implications for your estate as you’re creating your plan. Your attorney will be able to explain the nuances to you if needed. You may need to factor those taxes into your estate plan.
7. Review Your Estate Plan Often
Estate plans are living things. They need to be reviewed regularly and updated as your life changes. Get in the habit of reviewing your estate plan at least once a year. During that review, contact your attorney if you notice anything that needs to be modified. And if you experience a major life event between review periods, let your attorney know so they can help you reflect those changes in your plan.
Let an Illinois Estate Planning Attorney Help
Creating an estate plan that truly reflects your needs and your goals is one of the best ways to create a lasting legacy for your loved ones. Let the experienced Illinois estate planning attorneys at Legacy & Life help. Contact us today to schedule a consultation.