The Basics Of Estate Planning For Someone Who Doesn't Have An Estate
Estate planning isn't just for those who have physical estates to leave behind. Anyone will benefit from planning ahead. Here's a basic guide on planning ahead when you don't have an "estate" in the physical sense.
Think About Your Business
You may not have a home to leave behind, but you may have your own business. This could be something to keep the roof over your head or a widely successful local business. Either way, you want to make sure bills are dealt with quickly and it isn't run into the ground afterwards. Who will get your business after your death? Will the person in control of it be instructed to deal with the closing of it?
Dealing With Your Final Bills
Your financial commitments don't end just because you've died. You'll need to set up steps to ensure your final bills are paid. Who will be in control of this and where will the money come from? This part will also involve the closing of accounts.
Make sure you have all your accounts easy to access. Make a list of all the institutions you deal with, including any dormant accounts. Phone, internet and television companies need to be added onto the list along with any third-party loans you have.
Set Up Your Life Insurance
Part of estate planning is setting up life insurance and choosing your beneficiary. This is especially important if you're the main earning party and will need to ensure your family is supported in the event of your death. The beneficiary will usually be a spouse, but you can also set up multiple beneficiaries to get the payout split to those who need it.
Protect Minor Children
Your children aren't technically "estates," but they need to be included in your estate planning. Who will look after them in the event of your death? This needs to be someone whom you can trust and wants to raise your children for you. You'll always want to think about finances involved in this, making sure the people you've chosen have enough money to support your minor children.
Splitting Up Your Belongings
Just because you don't have a property doesn't mean you don't have belongings. You'll have your furniture and personal items around the home. You may have a car, and you may have items in storage. Your estate planning needs to set up the splitting up of these belongings.
Not having an "estate" doesn't mean you don't need estate planning. Go through the steps above to make sure everything is ready whenever death comes calling.