by Philip Wyre

Created on: November 04, 2009

Estate planning 101

Death is an unavoidable part of life. It is also a difficult thing for the majority to think of, especially if they are leading a healthy life. Planning for what happens after your death in respect to your assets is an important task that with proper planning, can limit the stress for your family. There are a number of steps you can take to ensure your estate will be properly managed upon the event of your death.

Write a Will

A last will and testament is a legal document that clearly states who will receive your assets. It is important that you have a proper Will written up so that there is no questioning what is to be done with your assets. Having an inadequate will, or not having a will at all can lead to complex and stressful legal proceedings after your death, as it is worked out how to deal with your estate. This will put a strain on your family and those who you wish to receive your assets, may end up with little or nothing.

Keep your will up to date

As lie progresses, situations change. You need to ensure that your last will and testament takes into account any changes in your assets or changes in the family such as deaths, births, marriages and divorces. You should aim to have your will reviewed every 2 years to ensure that your will If you update your will, it is important that you destroy any previous wills you have had written up. Even tough a replacement will should have a clause that invalidates all previous wills, it is a sensible precaution to ensure that your out of date will is destroyed so your wishes are clear.

Have a living will written up

A living will expresses the wishes of someone who is still alive, but is incapacitated by ill health and so cannot verbally state their wishes. This is important to make it clear what you want in relation to having your life extended by extraordinary means even I there is little chance of recovery.

Mention all your children in your will

It is important that you name all your close family in your will, even if you are only giving them a token amount. If someone is not named in a will, it can be argued to a judge that you have simply forgotten to include them in the will, and the judge can assign part of your assets to the individual. If you clearly state what everyone is to receive, your assets will be given to those who you wish it to go to.

Taxes

Estate taxes can be high and can take a significant chunk of your estate out of the hands of those who you feel deserve it. With proper

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