What Does It Mean to Plan Your Estate

Yee Law Group Inc. > What Does It Mean to Plan Your Estate

Estate Planning Lawyer Roseville, CA

It’s not always easy looking into the future and predicting what will or won’t happen. And maybe you’re the type of person who “goes with the flow” and doesn’t do much planning. However, if you have a family or loved ones that you want to take care of in the future or if something happens to you, it might be the time to think twice about planning for your future. 

What is estate planning?

According to Investopedia, the definition of estate planning is defined as:

The preparation of tasks that serve to manage an individual’s asset base in the event of incapacitation or death. The planning includes the bequest of assets to heirs and the settlement of estate taxes. Most estate plans are set up with the help of an attorney experienced in estate law. 

This all might seem extremely overwhelming and you’d be right. Estate planning can become difficult to understand and navigate when it comes to your state laws and federal laws. But, you shouldn’t let that stop you from planning the future of your estate and assets. It’s an important tool for your future whether you consider you have a lot or a little to your name.

There is the common misconception that if you aren’t rich then there’s no need to plan your estate. If you’re having that thought in your head right now, you need to get it out of your mind immediately. Your estate includes everything that you own. It doesn’t matter the size of it, it’s everything that you have worked your entire life for it should be worth taking the time to plan for what happens to it. 

Estate planning will be the process of designating who will receive your assets and handle any responsibilities after your death or incapacitation. Having a plan ensures that your beneficiaries receive assets that can minimize estate tax, gift tax, income tax, and other taxes, which would be extremely helpful to your loved ones and you. 

Steps to take when considering estate planning

Take an inventory of your stuff. You’ll be surprised about everything that you own and what is both tangible and intangible assets.

Tangible assets can include:

  • Homes, land, other real estates
  • Vehicles like cars, motorcycles, or boats
  • Collectibles like coins, art, antiques, or trading cards
  • Personal possessions

Intangible assets can include:

  • Checking and savings accounts
  • Stocks, bonds, and mutual funds
  • Life insurance policies
  • Retirement plans
  • Health savings accounts
  • Ownership in a business
  1. Understand your family’s needs and how you can protect your family after you’re gone.
  2. Establish a plan that includes important legal directives like a trust, medical care, financial power of attorney, or limited power of attorney, 
  3. Review your beneficiaries
  4. Take note of your state’s estate tax laws to minimize estate and inheritance taxes.

If you have gone over these few steps then you’ve probably realized that you might need more help to establish a plan then it might be time to consult with a professional like an estate planning lawyer in Roseville CA from a law firm like Yee Law Group, P.C. can help you with the process. 

Having a plan is the best thing that you can do for yourself and your loved ones. You don’t want to hesitate when it comes to making a plan.