There are many terms you can use to describe preparing for the end of your life, but “fun” would not be one of them. It’s literally a morbid subject, but a necessary one. Having to decide what to do with your wealth is a privilege, but that doesn’t make it easy. What can you do to ensure you pass on your wealth to whomever you want while making the process as simple as possible?
Estate Planning
Drawing up a last will and testament can be quite the chore. Finding an attorney, making tough decisions and grappling with your own mortality are reasons enough to procrastinate. But it’s always better to figure this stuff out earlier rather than later — or never. Wills aren’t only for retirees and seniors, though. Wills are great to have for people of any age, especially if they have wealth to pass on.
Tips for Passing on Wealth
Here’s some advice you can use to ease the worries of your loved ones and ensure your wealth goes where you want it to after you die:
Make a Detailed Will
We’ve already gone over the importance of drawing up a will early, but the quality of your will matters, too. Not all wills are as clear and detailed as they could be. Specifying who should get what and how much is critical to avoiding potential disputes after you’re gone.
Appoint a Neutral Executor
Many people appoint a spouse or child as executor. If you only have a sole inheritor, then that might make sense. But if you have multiple inheritors and a sizable estate, it’s probably worth appointing a neutral executor. You can appoint a financial institution or your attorney to be your executor, thus avoiding issues of bias.
Name Beneficiaries on Accounts
For many retirement and investment accounts, you can designate beneficiaries with the financial institution. This is better than simply naming them as beneficiaries in your will, because listing them on the account itself means the money doesn’t have to go through probate. Your beneficiaries can access these funds much more quickly.
Trust in Trusts
Establishing a trust can make asset distribution easier, and it offers you more control over how you transfer your wealth. Revocable trusts offer flexibility, allowing you to make changes. Irrevocable trusts are unchangeable, but they provide stronger asset protection.
Be Proactive
It’s worth making a will even if you’re still healthy and spry, but being proactive doesn’t stop there. You don’t have to wait until you're gone to distribute your wealth — you can start transferring your assets whenever you want. This can also lower the estate taxes.
Get Everyone on the Same Page
Telling family, friends and trustees just what you want to happen and for whom to receive what can help avoid misunderstandings and battles after you’re gone. Consider including a letter of intent in your will, just to be extra clear.
No matter your wealth or the number of your heirs, Vectra Bank can help ensure your wealth goes where you want it to. Contact a Vectra Bank professional to learn more.
