Having an estate plan can help you articulate your plans for the future. Within your strategy, you can provide your family with instructions for the distribution of your remaining assets after your death.
Seeing that your plan functions as you intend will require the participation of some reliable people. An executor, for example, will oversee the responsibility of closing your estate.
Avoid costly consequences
Closing an estate involves a lot of moving pieces including the following:
- Obtaining a death certificate
- Repaying remaining debts
- Collecting assets
- Distributing the estate
- Paying taxes
- Disposing of property
If your executor overlooks any steps, the result could have costly repercussions for your surviving family members. Spending adequate time finding a reliable executor can give you peace of mind. CNBC suggests finding someone that exhibits trustworthiness, organizational skills and an ability to communicate effectively. Other important qualities for them to have include empathy, punctuality and dependability.
Keep the peace
Without a clear plan in place, your surviving family members may disagree about what you would have wanted after your death. An executor can help keep the peace and enforce your plan the way you would have wanted. Having a third party oversee the execution of your estate can remove that responsibility from any of your family members and hopefully minimize discord.
You will want to work closely with your executor as you plan your estate. Provide information about updates as you make them so you can prevent misunderstandings. When you give clear instructions about your final wishes, your executor can act on your behalf with confidence and precision.