Estate planning is an important element of preparing for the future. A will or living trust ensures that assets are distributed according to your wishes upon your death. You can even plan for what happens should you become incapacitated before your passing. Here are a few factors to be mindful of when starting the estate planning process.

How to Prepare For Estate Planning

1. Know Your Assets & Family Needs

Before you start estate planning, it may be helpful to make a list of all tangible assets, such as real estate and vehicles. You should also include intangible assets, such as stocks, savings accounts, and life insurance policies. Consider how these assets should be distributed to beneficiaries, and make sure to update information if there are changes to your family situation, such as a marriage, divorce, or the birth of a child.

2. Plan Ahead With Directives

Estate planning also accounts for legal directives beyond distributing your assets. If you become incapacitated, a medical care directive or giving someone financial power of attorney will ensure that another trusted individual can act on your behalf. If you have children who are minors, you should name a guardian.

3. Be Aware of Tax Implications

Depending on the size of your estate, your assets may be subjected to an estate tax. For individuals, the federal government taxes estates worth over $5.5 million. The state of Connecticut also has an estate tax. However, leaving assets to a spouse or charity can qualify you for tax exemptions, allowing you to do more with your estate.

If you need sound legal advice as you begin the estate planning process, don’t hesitate to contact Greene Law PC in Farmington, CT. With over 25 years of experience, their award-winning attorneys will help you craft a solid plan for the future. To learn more about their practice areas or to schedule a free consultation, visit them online or call (860) 676-1336.