How Can I Create a Bulletproof Estate Plan?
As a lifelong resident of Colorado, it is not enough for you to just create a will to protect your assets. You need to make sure your plans are dispute proof. Rushing through the estate planning process can lead to mistakes that can result in your final wishes being ignored.
People are living longer these days. You should expect to do so too. Even though you want to provide for your family after you die, you need to consider what will happen to you near the end of your life. Here are some ways you can bulletproof your estate plans.
Create a revocable trust
You could fall ill and need medical care or become unable to manage your finances and make decisions about your care. If you become disabled or mentally incompetent, you can appoint a person or people who you trust to act in your stead. According to CNBC.com, “a revocable trust ensures that you are taken care of while you are alive.”
Protect your heirs from disputes
There is the chance that your last will and testament offends some family members. Dissatisfied heirs can create complications and file disputes that can tie your estate up in probate court indefinitely and prevent your intended heirs from inheriting what should rightfully be theirs. To reduce the chances of this becoming a reality, you should include a no-contest clause to discourage disputes. Keep in mind that a no contest clause only affects beneficiaries who are already included in your estate plans.
Keep impeccable records
Just as important as it is for you to choose the right executor for your estate, it is equally important for you to organize all of your records. Your executor is responsible for administrating your estate. It will be much easier for them to honor your wishes to ensure that your final affairs are managed properly if you organize all of your financial, business and medical documents and keep them somewhere safe and secure for them to access when the time is right.
When done right, estate planning can ensure that your loved ones are financially protected after you die. Make sure you review your plans every few years and modify them if your final wishes change.