It is common for high net worth individuals to think about their assets when it comes to estate planning. While these assets are important, there are other things that need to be looked at as well. Individual needs to consider the legacy they wish to leave behind.
As laws change, traditional estate planning advice might not always be appropriate for some Washington residents. For example, they might want to consider whether family members would benefit from an inherited Roth, which may pay out distributions for years.
When people in Washington have kids, they may start thinking about estate planning. Children inspire many people to make a will in order to help ensure the children will be provided for in the future. Still, many people choose not to have kids and live fulfilling lives. They may have even more time to dedicate to their careers and accumulate significant assets. People who are child-free may think that they don't need to worry about estate planning. However, most child-free people still have strong feelings about what they want to happen to their belongings after they pass away.
Some people in Washington have estate plans that include both a will and a trust. One of these is generally the main document for the estate, and each has its own advantages and disadvantages.
When planning their estates, one thing that Washington residents often forget about is their pets. Despite the fact that nearly two-thirds of all Americans own at least one pet, animals are often overlooked in estate plans. If you fail to plan, your furry companion could end up in a shelter or worse. To ensure that their pets receive the right kind of care, individuals should consider these four suggestions.
Estate planning is one of the things in life that people in Washington and around the country tend not to consider until they have to. It is not pleasant to think about or plan for death, but it is best to think about it sooner rather than later. When people fall ill unexpectedly, it can be a scramble to get affairs in order, and a basic estate plan can be established with only a bit of time and effort.
Washington residents who want to save for retirement may want to consider using an individual retirement account. If they decide to use an IRA, one of the things individuals should consider is to whom the funds should be left when they die. Some individuals may consider designating a trust as their IRA beneficiary.
Trusts give Washington residents more control over their assets than wills. In fact, having a trust might be just as important as maintaining a will. There are several instances in which a trust provides extra protection. For example, because a last will and testament only takes effect after death, an estate owner who is unable to make their own decisions might be the subject of a lengthy probate process to appoint a guardian. Naming a guardian in a living trust could help prevent this and other problems.
When people in Washington think about making a will or a trust, they may think first of their bank accounts, real estate and other forms of physical property. However, digital assets are becoming increasingly important in the estate planning world. As people live more of their lives online, access to digital accounts can be a critical aspect of planning for the future. Writing a will is often just the first step in developing an estate plan; people need to review their documents in the years to come to reflect changes to their lives as well as alterations to tax and estate law.
Most Washington residents, if asked, would likely acknowledge that everyone should have some form of estate plan in place. Despite that, a significant percentage of adults have not taken basic steps towards accomplishing that objective. Other than a reluctance to recognize one's own mortality, one reason for this seeming inconsistency may be confusion and lack of understanding as to what exactly an estate plan entails. Perhaps a clear understanding of the purpose the various documents in an estate plan serve will help provide greater incentive for individuals to prepare for the inevitable and better secure their future.