Although it’s unpleasant to think about, it’s a fact of life that things often don’t go as planned. Having an estate plan in place can help to protect your assets and your family in the event that something unexpected happens. How do you create an estate plan? There are a handful of simple steps you can take to get started.
Make a will. If you don’t have a will, you can create one through a simple online service such as LegalZoom, but in many cases it’s smarter to go to an attorney specializing in the transfer of assets after someone’s passing. If you do have a will, it’s a good idea to make sure it’s been updated. The last thing you want is for assets to be left to an ex-spouse or to have no specifications for who will raise your children.
Designate beneficiaries and contingent beneficiaries. Do this on as many accounts as you can. The more accounts that you can directly leave someone in charge of in the event of your passing usually means that assets (IRAs or 401(k)s) will avoid probate.
Purchase term life insurance if you have young children. This is easily the best way you can protect your new family financially. Term life insurance can be flexible, and you can make decisions on what you’d like to see paid for in the event of an unexpected tragedy. Do you want your children’s college tuition to be paid in full? Would your spouse need to stay home full time as a single parent with little ones? These are things you can think about and ensure your term life insurance covers.
Read more about how to protect your family and loved ones with an estate plan in our article in the Columbia Daily Tribune.
As a financial planner specializing in comprehensive financial planning, Tim enjoys helping clients in Columbia, MO with managing their taxes, financial risks and other financial issues.
If you would like to learn more about this and other personal financial planning topics serviced by Clarity Financial please contact us at 573-447-7007. Clarity Financial, LLC is a fee-only financial advisory firm in Columbia, MO. Appointments are welcome and initial consultations are free.
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This article is the property of Clarity Financial LLC.
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