What are the steps in estate planning?

On Behalf of | Jun 15, 2021 | Estate Planning And Probate |

Estate planning commonly involves taking deliberate actions to draw up a will and other documents. Texas residents might have an idea about what the process involves, but they may need to put more effort into things than initially realized. Errors and oversights could cause problems, and effective planning might cut down on the chances of any regrettable outcomes.

Following the basic steps

Thoroughness ranks high among the necessary fundamental steps in estate planning. Taking a detailed inventory of personal and business assets ranks among the most basic duties. Assets, such as houses, cars, and brokerage accounts, aren’t the only things to log. Debts and other obligations typically require settling during probate. Itemizing all obligations might make things easier for heirs.

Choosing a responsible executor of the estate is a vital step. The executor often has numerous tasks to perform, so selecting the right person for the job makes sense.

Making a file containing everything from online passwords to keys to storage unit locks factors into estate planning and probate. In addition, providing the executor with utility account numbers could speed things up during probate.

Thoroughness counts during estate planning

While a last will and testament might be among the most important documents, other legal contracts may factor into the overall process. For example, some documents direct legal authorities to others while the grantor is alive. Financial power of attorney and a health care proxy are two such documents.

And is a will the right document to draw up? Perhaps a trust would work better, depending on the client’s circumstances and the beneficiaries’ situation.

Not everything necessarily needs to go through probate, either. When it is possible to name “transfer on death” beneficiaries to accounts, doing so may save a lot of time for survivors.