Deciding to create an estate plan is a wise and responsible decision. Most of us know this, but getting started can be difficult if this is unfamiliar territory.
First, it is important to realize that estate planning is a process that takes time. Creating a comprehensive estate plan is typically not as easy as making an appointment to have a will drafted and signing some documents.
In this blog post we will discuss some of those steps that can help you get started with your estate planning.
Starting with a will
Although there are various documents that make up an Ohio estate plan, a basic estate plan starts with a will. From there, you can decide if you need other pieces of an estate plan, such as a trust or power of attorney.
Identify assets and debts
Since a will lists how your property will be distributed, make a list of your assets. Knowing what you have is necessary to learn how to protect it and distribute it after you pass away.
Assets include real property such as a home and personal property such as artwork or jewelry. Bank accounts, insurance policies and retirement accounts are also assets.
List your assets and their estimated current values. Do the same for debts. If you have a safety deposit box, include the location and contents.
Once your list is complete, you can work on who will get what after you are gone. Assets may be used to pay your debts before they are distributed to heirs, so keep that in mind when making decisions.
Choose an executor
The person who is responsible for administering your estate is known as the executor. This includes identifying your assets, notifying your creditors and ensuring your assets are properly distributed.
Many people choose their spouse as an executor. Your executor should be someone you expect to be in good health after you pass away. If you choose your spouse, consider appointing a backup executor.
With your list ready and your executor chosen, you are ready to draft a will. From there, you can explore other estate planning options.