Estate planning: what you need to pay attention to

Estate planning: what you need to pay attention to

On Behalf of | Nov 6, 2020 | Estate Planning |

Life is unpredictable, which is why so many legal and financial professionals in Louisiana urge people to begin to create their estate plans as soon as possible. What should you add to your plan? This is a very important question as it can determine how your assets are distributed to your family. The following includes some of the most important areas to focus on.

Being incapacitated

Estate planning isn’t just about what happens when you pass away but rather all the things that could occur before then. For example, if you become suddenly ill or are involved in a serious accident, then you may not be able to handle your assets. By drawing up an estate plan with an attorney, you are positioning yourself to hand over the legal authority of your estate to someone who you trust. Failure to do so may lead to a series of legal battles between family members.

Dealing with taxes

Taxes are a huge reason why so many people take the time to craft an estate plan. For example, if there are any concerns regarding which of your family members will end up paying taxes on your retirement accounts, then bringing in an experienced accountant is highly suggested. You will also need an accountant to determine how much or if any income tax is to be paid on your estate.

Your death

At the time of your death, assets in your name will be transferred to the people you have chosen to add to your estate plan. The names of those receiving your assets will be found within your will, which an attorney may write for you. Other areas of a will, such as your life insurance or retirement account beneficiaries, might be better placed in the hands of an accountant.

Estate planning can be rather daunting to take on your own. This is why it is recommended that you surround yourself with a professional team to provide you with important legal and financial advice.