For Texans of any age, having an organized estate plan is a wise step. The need to formulate estate planning documents can be expedited by the unforeseen. One specific and unexpected event is a poor medical diagnosis.
Having the financial information organized is an important step. A notebook where all the information is stored can be a simple and key strategy. When the person becomes seriously ill or dies, then the information will be easily accessible for the loved ones. All financial information, assets and retirement accounts should be in this notebook.
Next, beneficiaries should be selected. The financial accounts should have a listed beneficiary. This might be more imperative than a will, as the assets will not need to go through probate. Texas is a state that allows transfer-on-death deeds. Just as assets must be listed, so, too, should liabilities. That includes credit card debt, outstanding loans, a mortgage and more. Insurance policies should be handy.
Taking steps to reduce the taxes heirs might need to pay upon the person’s death is a smart decision. There are ways to do this with a brokerage account or a Roth IRA. Some people might think about clearing some debts, such as a mortgage. If it is possible to pay it off, then this could be beneficial. Finally, having all the passwords to various accounts stored in one secure location can help loved ones access these accounts after the person has died.
It is an unexpected shock when a person is suddenly diagnosed with a potentially fatal medical issue. For those who have not moved forward with strategies for their estate, this will add a certain amount of pressure to shore up their affairs for their loved ones. A law firm that understands estate planning can be helpful to address this unfortunate issue.