If you are considering planning the future, like many others, you may feel somewhat intimidated at the concept of forming a strategy for the unknown. Life is full of surprises, some favorable and others perhaps less so, and having an estate plan in place to cover as many scenarios as possible could prove invaluable.
Despite your reservations, you may feel it is vital to have a strategy in place to account for certain changes in life. However, with little to no experience in the area, you could be uncertain how best to approach the situation.
Understanding the basic components of an estate plan
With a multitude of available estate planning options, you could also be feeling somewhat overwhelmed by the process. However, by taking some time to explore the basic components of an estate plan, you could obtain a sense of direction, and some of the available options may include the following:
- Distribution of assets: A will is one of the documents most commonly associated with estate planning. In your will, you can dictate how you wish for your assets to be distributed upon your death, and you can choose someone to act as guardian for your kids should the need arise.
- Various types of trusts: By placing your assets in a trust, you can decide when and how often your chosen beneficiaries receive the benefits thereof. There are numerous types of trusts, some of which you can alter throughout life while others cannot be modified. A trust can also protect future generations from the process of probate.
- Assistance with future decisions: You can also create a power of attorney or a health care directive, which could prove beneficial should you become incapable of making the necessary financial or medical decisions on your own.
- Designation of desired beneficiaries: Beneficiary designation forms ensure that your chosen beneficiaries receive the funds from assets such as insurance policies and retirement plans.
As changes in life occur, your preferences and wishes may also change, and it may be in your best interests to review the information in your estate plan on a regular basis and make updates as necessary.
Assistance in the process
However, with numerous options to consider when forming a strategy for the future, you might be searching for assistance in ensuring you cover every aspect along the way. You could speak with someone with knowledge of federal and Colorado state estate planning laws for advice. Obtaining guidance on every available option could help you form a plan that is in keeping with your wishes for life ahead, and may help inform you of when it may be necessary to update your information.