Creating an estate plan can allow you to properly distribute assets such as a Florida home after you pass away. It may also help ensure that your children are taken care of in the event that you can’t do so yourself. Taking this step may prevent strained relationships between family members.
Estate planning is about more than creating a will
For many people, a will is an effective tool for meeting their estate planning needs. However, it’s important to note that it is only one tool among many. If you want to keep assets out of your estate for tax purposes, it may be a good idea to place them into a living trust. It may also be a good idea to appoint a financial agent who will manage your affairs if you become incapacitated.
Don’t forget to take family dynamics into account
Ideally, you’ll have regular estate planning conversations with your family. This will help you better understand what your beneficiaries may want or need the most from you after you’re gone. For example, a conversation may reveal that one child is better suited to take over the family business while another child would benefit most from inheriting a vacation home.
Regular estate planning conversations will also help ensure that loved ones understand why you structured your plan the way you did. When people understand why you made a certain decision, they are more likely to respect it even if they disagree with the outcome. Ultimately, taking the time to communicate your goals and desires may reduce the odds of a legal challenge to your will, trust or other plan components.
A thorough estate plan can help you take care of your family during your lifetime and after your death. It can also help to ensure that a portion of your estate goes to causes that you truly care about. It may be in your best interest to review your estate plan periodically to ensure that it conforms to state law.