If the thought of planning for the unfortunate eventualities of your life keeps getting you down, and if you are continually putting off taking care of your important paperwork, now is the best time to get it done. Life is filled with uncertainties, but one thing that is certain is that your end-of-life paperwork will eventually be needed by someone. You do not want to burden your loved ones with disorganized paperwork, or worse yet – no paperwork at all. Keep reading for guidance on making your decisions known, and getting your affairs in order.
Set Up a Trust
A trust is essentially a fiduciary agreement where a named trustee manages your held assets on behalf of your beneficiaries. It is a legally binding agreement that will help your beneficiaries avoid the headache of probate and allow them to receive their assets more quickly. If you do not currently have enough assets to qualify for a trust creation, you can always make one later as your financial capital increases. Additionally, a trust may offer protection against gift and estate taxes.
When you are in the process of creating a trust, it is important to know if you will need a tax ID number for trust after death occurs. It can be very confusing to figure all of this out on your own, so be sure to seek answers from qualified sources. If you are working with a lawyer, they will advise you and assist you on what needs to be done to set up all of your paperwork correctly.
Make a Will
A will is a legally-binding document that anyone, regardless of age, should create. A Last Will and Testament, or simply a Will, is the document where you get to clearly state where you want your assets to go after your passing. The will should also lay out a guardian or where you want your minor children (if any) to go once you are gone. This portion is critical to pay attention to as you need to consider their well-being throughout the process.
Your will can be as comprehensive as you wish in terms of what assets you include. Some common items listed in a will are:
- Guardianship of children
- Personal belongings
- Financial assets, including checking and savings accounts, investments, trusts, etc.
- Property
- Vehicles
- Pets
- The name of your executor
Watch this video to learn more about five of the benefits of making a will.
If you are feeling overwhelmed by the process of end-of-life planning, do not give up or let it get you down. You simply need to start the process. Try breaking the tasks down into bite-sized pieces, scheduling them as calendar items or taskers, and giving yourself a realistic deadline for each item. After you have done that, take the first step. Before you know it, you will have your affairs in order and can rest easy knowing your loved ones will not need to worry about you (and you will not have to worry about them).
