Many in Texas and elsewhere thrive on the challenge of taking care of household projects and repairs themselves in an attempt to save on the costs they might incur if hiring a professional. Some have a similar mindset where finances and estate planning are concerned. A recent article suggested caution in this area and outlined the pros and cons of do-it-yourself planning when it comes to trusts, wills and estates.
Posts tagged "wills"
While it is true that Texas residents may complete the estate planning process for their relatives, it is also true that they are getting something out of it as well. Indeed, knowing that an estate plan is going to help loved ones avoid estate taxes and knowing that one's estate will be distributed the way one wants can provide peace of mind. What, then, are the vital elements of great estate planning?
It is important for Texas residents to set up a last will and testament if they want to dictate how their estates will be divided following their deaths. Incredibly, though, a full 70 percent of Americans do not have a will on file. However, when you consider how much easier your death will be on your loved ones if you have a will on file, the choice is clear: Wills need to be written now before it is too late.
Thinking about the day our lives will come to an end is frightening, and most Texas residents put it off for as long as possible. What that means is that they put off estate planning too. In fact, as unbelievable as it may sound, over half of Americans who have children do not have a fully planned estate on file.
One of the mot difficult aspects of estate planning is trying to figure out who will get what. It is likely one of the biggest reasons why Texas residents tend to put off completing the task. Indeed, a lot of consideration is needed on an emotional and financial level, and also in terms of family dynamics, when trying to figure out how one's estate should be distributed. Fortunately, wills, trusts and various asset distribution plans can be designed in a way to avoid the risk of problems further on down the line.
A study that was completed by the Pew Research Center indicates that 87 percent of the American adult population is currently using the Internet. This figure has increased by 100 percent during the last 14 years. As Internet usage has increased, so too has the amount of data that people store on the Internet. In terms of wills and estate planning in Texas, much of this data can be classified as digital assets.
Between brainstorming this week’s dinner meals and keeping up with business clients or work tasks, people in Texas may not feel that they have enough time to put together estate plans. In addition, some individuals feel that estate planning is unnecessary since they aren’t rich or because they’re single. However, creating an estate plan is essential for all legal adults who have assets.
Texas residents in the process of putting together a will may wish to consider the importance of appropriately filling out the beneficiary paperwork on their insurance policies and various investment and banking accounts. Indeed, many individuals make one fatal estate planning mistake while filling out their individual retirement account (IRA) forms. They either forget to update the beneficiary information, or they fill it out improperly by making a general reference to their last wills and testaments.
Many individuals may be under the common misconception that estate planning and wills are only for older Texas residents. However, age should not be considered a determining factor when it comes to deciding if it is time to draft a will or begin one's estate planning process. Indeed, wills are important because they instruct the people who survive a deceased loved one on how that person may have wanted possessions and financial assets to be distributed and divided in the wake of death.
For an experienced estate planning professional, many of the questions one must ask regarding the estate planning process come second nature. Nevertheless, the average Houston resident may be at a loss for the kind of estate planning questions he or she needs answers to. Indeed, some of these questions are vital to ensuring that one's will is followed to the letter after one's death.