It is important that your estate plan be as comprehensive as possible, to make your wishes for distributing your property as clear as possible. You can also designate someone to have power of attorney in case you are ever incapacitated, and draw up a health care directive to control the extent of the medical treatment you would receive in such an event.
One of the fundamental steps of setting up an estate plan is deciding whom to name as the beneficiaries. Though your first thought may be to leave everything to your spouse or children, there are a few things to consider.
Most of us have a combination of assets, like bank and retirement accounts, and debts, like mortgages and auto loans. This likely will be the situation the rest of our lives. Thus, when we die, there may be creditors who are owed money, or at least believe they are.
We encourage everyone to set up an estate plan, so that they will know their assets will be distributed they way they want after they die. This is especially true for married people and parents, even if they are still young. However, there is a right way and a wrong way to go about it.
For most people, the main goal of any estate plan is to make sure that your loved ones are taken care of after you die. This can mean everything from detailing your end of life wishes to dividing your assets amongst your beneficiaries to naming an executor for your will.