Cents and Sensibility
Cents and Sensibility
QUESTION: I've heard a lot about the importance of proper estate planning but don't have a clue where to begin. What are some of the things I should be doing? Estate planning requires
5 steps to get startedAnswer: Planning for the distribution of your estate isn't necessarily difficult, but it does require serious thought. Here are five steps to help you with this process.
>> Step 1: Assemble your estate-planning team.
One of the most important decisions you'll make regarding your estate is who will guide you through this process. This team often includes four individuals: An attorney, a tax professional, an investment professional and you.
>> Step 2: Determine your objectives.
Estate planning truly focuses on planning for life, your life and the lives of your heirs. Estate planning involves financial and tax matters, but it also involves helping ensure family members are secure. Discuss your objectives with your team.
>> Step 3: Create a list of your assets.
To help you create a proper estate plan, your team must have an accurate list of your assets. Ask your attorney or investment professional if he or she can provide a document that will help inventory your assets.
>> Step 4: Minimize administrative details.
Settling an estate can involve a barrage of paperwork. Consolidate your assets, and keep a detailed inventory of your assets. This will give your survivors the information needed to re-register any securities.
>> Step 5: Draft a will.
A will is a written document that explains how you want your property distributed. A will is crucial because it allows you to control how and to whom your assets are distributed. If you die without a will, state law will govern how your assets are distributed. A will is absolutely necessary if you have children who are still minors because it allows you to designate a guardian. Once you have a will, don't file it away and forget it. Take it out periodically and review it.
Guy Steele is a financial planner and head
of the Pali Palms office of Edward Jones. Send
planning and investing questions to him at 970
N. Kalaheo Ave., Suite C-210, Kailua, HI, 96734,
or by email at: gsteele2@pixi.com