Invest In An Estate Plan

With the deaths of so many celebrities in such a short span of days, I had to write about the importance of investing in an estate plan.

Estate planning covers three phases of dealing with assets: accumulation, preservation and, finally, the distribution of those assets after death.

Photo by Jeremy Burgin, courtesy of flickr

Here are the most basic goals of an estate plan:

1. You should control who gets your money or assets, as well as when and how.

2. Your estate plan should minimize final costs. By cutting back on taxes, administrative work, etc. the bulk of the money can be passed on to your beneficiaries.

3. Your plan should also cover what should happen to your assets if you were to become incapacitated.

Developing an estate plan may require the services of several professionals including attorneys and accountants. A financial planner can help get you started and coordinate the activities.

Death is an uncomfortable topic to discuss, but it is one that we will all have to face. Having an estate plan can make things easier for those left behind.

The following links will show you some information needed to create an estate plan:

Abanet – Estate planning checklist

Estate Planning for Everyone – Provides explanations of wills, trusts, power of attorney and health care directives.

On a side note, I hope Ed McMahon, Farrah Fawcett, and Michael Jackson will rest in peace.