Planning for the futures of heirs through estate planning is something that many people in Rhode Island never consider. Why take the time to do something that can wait until extreme old age. The problem is that accidents can strike at anytime and our families would suffer for our lack of foresight. Instead of putting off estate planning set aside some time to get things done. Anyone can get started with estate planning even if they have no experience or no absolutely no one who has ever bothered with it.
Setting up Trusts
Trusts are something that many people associate with the ultra rich and extremely successful. In reality a trust is available to anyone with a bit of money or property that they need to be managed for the future use of a loved one. Setting up trusts is something that everyone should due during estate planning and doing it early will help ensure the well being of your family even if you never write a will. When setting up a trust for a child, parent, or sibling it is important that you find a trustee to manage the account in the event that the recipient is underage or unable to make financial decisions for them.
Getting Powers of Attorney
It is impossible to know when a disaster might strike and we find ourselves unable to make even basic decisions on our own behalf or on behalf of our family. In these instances things could get complicated because many governments and health care practitioners will not provide information to, or take advice from, third parties who are not legally authorized to manage the affairs of the ill or injured individual. A power of attorney can help avoid a difficult situation.
With a power of attorney an agent acting on your behalf will be able to talk to anyone and everyone you wish. They will be able to manage bank accounts, open trusts, or even pay your taxes until you recover. When choosing an agent during your estate planning in Rhode Island only choose a person that your trust. Remember, once a person has a power of attorney and is acting as your agent they can make gifts of your property and other assets to themselves or anyone else they see fit.
Choosing Beneficiaries
Always name beneficiaries to all of your bank accounts, life insurance policies, and retirement accounts (IRAs). Doing this will make it easier to determine who you intended to get your money after you are gone. Also, naming beneficiaries will ensure a smooth transfer of accounts and also limit the amount of taxes that need to be paid on your estate by your heirs.
