The importance of thoroughness cannot be understated with estate planning. As people review each asset and matter with estate planning, some may fall through the cracks, getting overlooked.
Sure, you address what happens to your house, real estate, motor vehicles and financial investments. You also make sure to name a guardian for your minor children. But what will happen with the family pet, items of sentimental value as well as the loans you provided one of your children who struggled financially?
Digital assets and loans
Here is a list of assets and issues that people may overlook when assembling an estate plan:
- Collections: They may vary and include jewelry, antiques, fine art, coins, sports memorabilia, rare books and comics. Make sure to set aside money for appraisal.
- Family pets: Such longtime family members need a home. Determine who will inherit the cat, dog, parrot or even horse. Also, make sure to designate money for the pet’s care.
- Family heirlooms: Such properties have historical and sentimental value. Who will get the dresser and table built by your great-great-grandfather? Or your grandfather’s grade school report card from 1920? They may have little monetary value, but prove priceless to some family members.
- Loans to family members: In some cases, a person provides significant amounts of money to adult children to help them with a business endeavor, pay for college studies or when they struggle financially.
- Digital assets: Such assets may include social media accounts, photographs and videos, online banking accounts as well as cryptocurrencies. Select the appropriate person to administer them.
- Shipping-related costs: Certain bulk items such as antiques, furniture and collections need to be transported – sometimes at great distances — by the person who inherited them.
- Money for legal guardian: It is a good idea to set aside money for the guardian of your minor children. This would help pay for expenses related to health care, general care and even the need to remodel a home.
Make sure to ponder every detail when it comes to estate planning. When you make the decisions, your heirs and beneficiaries – like you – will gain a certain peace of mind.
Strategize and understand
Estate planning is not always that simple. However, if you strategize, make important decisions and understand the outlying issues that need addressing, you will build a solid foundation for your estate plan.