With the beginning of the new year many people are struggling with trying to keep their New Year’s resolutions. Many of these resolutions may have to do with personal finance planning, which could include catching up on taxes, budgeting or accounting. However, many of these aspects of personal finance will require continual updating, which can be challenging and discouraging for many people in Maryland. On the other hand, one part of personal finance which does not need continual attention throughout the year is planning for estate administration.
Once a person completes his or her estate plan the task is completed and there will be no need to continually revisit the estate plan, unless relevant circumstances change. Also, in creating the estate plan, one will gather information which will also be needed to work on other aspects of personal finance planning, such as budgeting. After one has completed an estate plan, he or she will have an easier time with creating a budget or retirement planning.
One of the first things a person needs to do when crafting an estate plan is create a detailed list of one’s assets and liabilities. Some of the important items that should be included are amounts being kept in bank accounts, vehicles, real estate, insurance policies and any debts owed for mortgages or other types of loans. This will help the executor of one’s estate when it comes time to distributing one’s assets to intended heirs.
After creating this list, one will be better informed when drafting the various legal documents which makes up a person’s plan for estate administration in Maryland or in any other state. Some of the important documents include a last will and testament, trust and power-of-attorney. However, each situation is different and it is important to be up-to-date on the latest changes in estate planning laws in order to design an effective estate plan.
Source: The Conway Daily Sun, All About Money: Start with an estate plan when getting your financial house in order, Deborah J. Doucet, January 3, 2014