Planning how your assets should be distributed after your death is as important as your retirement planning and disability planning. This will ensure you financial plan is solid and all your matters are taken care of in the event of a tragedy. An accredited financial planner will be able to assist you in the technical aspects of planning your estate, but there are a few practical steps you need to take to ensure that all your matters are taken care of.
Obviously, the first thing you need to do is create a valid will. You need top make sure that your next of kin or the executor of your estate knows where to find the original signed copy of your will. The original will needs to be presented to the Master’s Office before your executor is authorized to administer your estate as per you wishes. Also make sure that your will is properly witnessed. The will must be signed by you in the presence of two witnesses. Both must be over the age of 16 and neither a beneficiary of your will. They must also initial each page of your will.
After your death, your assets and debts are referred to as your estate. The executor of your estate needs to collect all your assets and ensure your debts are paid and the remaining assets transferred to the intended beneficiaries as per your last will and testament. The executor of your estate is usually appointed in your will, but you need to ensure that the person or company you appoint is willing to do the job. Smaller companies may not be interested in executing your will as the fees may be low.
There are three different groups of people you may appoint as the executor of your will:
* Banks. Many people choose to appoint their bank as the executor of their estate. This is sometimes in part because they ask the banks to draw up their last will and testament. Although this may be the most convenient way of getting the job done, it’s not necessarily the best way. This is because the service your surviving relatives may get from your bank may be less than satisfactory.
* Your surviving spouse. This is usually not a good idea either as your spouse would have just been through a very traumatic time. Your spouse will have many decisions to make and very often your estate will be the last thing on his or her mind.
* Financial advisor, lawyer or accountant along with your spouse. This approach is considered the best by leading professionals in this field. Your spouse will be familiar with the needs of your surviving family and aware of their requirements. The appointed professional should be well acquainted with the law and would be able to advise your spouse accordingly.
Appointing an executor will require executors’ fees to be paid over after your death. This is a requirement by law. Try to negotiate a lower fee with the company that you appoint to execute your estate.