Managing your finances raises a number of topics but none more important than planning for your family and finances in the event that you pass away or become incapacitated. Understandably, these are issues we do not like to talk about but it’s advisable to not fall into the trap of avoiding these difficult matters. Good estate planning will help to make sure that your wishes are carried out, and that your family and assets are well protected.
With this in mind, let’s take a look at the key areas that you should consider when designing your estate plan:
- Choosing a guardian for your minor children – This is an extremely important step and one that often requires an open discussion.
- Life insurance and trusts – Life insurance gives your family the financial security to continue their standard of living and fulfil their dreams. Life insurance payouts can be used in various ways; including paying off debts, paying for college education, or simply helping with general living costs and your spouse’s retirement. The proper use and design of trusts will help ensure that your wishes are met.
- Choosing the appropriate executors and trustees – Selecting the right people to act as your executors or on your behalf if you are incapacitated is crucial.
- Your Last Will and Testament – Your estate plan starts here and remember that this will be the last message you leave your family.
As with any financial arrangement, changes over time, not only in process and legislation but also in your own personal situation, mean that it is imperative to keep your estate planning strategy under review and regularly updated to ensure it remains effective and accurately reflects your wishes and objectives.