What does estate planning mean for a single entrepreneur? Estate planning is an critical process that should be discussed with your family and friends. There are multiple strategies to help you prepare for the future, but we will focus on four essential tips in this blog post:
1) Create a will: A will is the most basic estate planning tool. The last will allows you to decide who gets your property after death. It also helps ensure that your heirs can quickly distribute your assets without going to court if something happens to you.
2) Name guardians for minor children: You are single today but will want to settle down a few years later. In that case, if you have minor children, naming a guardian is another crucial estate planning tip. Even if both parents are living, but they aren’t together anymore, the court will choose the person it believes would be best to raise your child – even if that’s not what either parent wants or desires. You can plan it to protect your children from unnecessary problems later on.
3) Decide who gets what assets when they pass away: Just as important as deciding who gets your assets is deciding what happens to those assets. If you have a 401(k) or another retirement account, should it pass on directly to the beneficiary after you die? Or do they need lifetime distributions from it first before passing on the rest of its value? Estate planning can answer these questions.
4) Create a power of attorney: A power of attorney is a legal document that lets you to appoint someone else to make healthcare, financial, and other important decisions on your behalf if you are unable to do so. It should be regularly updated because it can become invalid or automatically cancel when certain criteria change (for example: when the person becomes incompetent).
So, talk to a lawyer if you have not done it already and get started with your estate planning. If you don’t know anyone who can do it efficiently, reach out to Peck Ritchey, LLC, and discuss this matter in detail.