Having an estate plan is one of the best things that you can do for your peace of mind and for the security of your loved one’s future. That said, it can be hard to figure out the best way to go about splitting it so that you can be sure that everyone gets their fair share. Read this guide to see some tips that you can use to split your estate in the best possible way, making sure that you do something you’ll be proud of, and that your loved ones will be happy with.
Compile a List of Your Assets
To begin with, you need to figure out how many assets you actually have so that you can work out how to split them. Some of these assets include real estate, businesses that you may have, intellectual property such as novels you may have written and other creative works, and your personal effects, including furniture and jewelry. Once you know exactly what you own, you may have a much easier time splitting it among your loved ones. You may even have novelty golf clubs and be among the record three million Americans who played golf for the first time on a golf course in 2020. Don’t forget to think about your financial assets, which include life insurance policies, investment accounts, bank accounts, and even money that’s owed to you in the form of debts you may have loaned to people.
Consider Dependents with Special Needs
If you have dependents who have special needs, such as disabilities. In this case, you may be in good standing by dividing your estate up into different proportions. Leaving more of your assets to those who are at a disadvantage is the fairest thing that you can do in this case. Otherwise, it’s a good idea to divide your estate equally among all your dependents, ensuring that there’s minimal chance of squabbles. The second option is the easiest one to use since you simply have to compile all your assets and then divide them by the number of beneficiaries that you have.
Find Out What Can’t Pass Through Probate
It’s important to keep in mind that there are certain assets that cannot pass through probate. These include retirement accounts and life insurance, which you need to name a beneficiary who will inherit them from you. Bank accounts are another one of these assets, and they have a survivorship feature. In this case, your bank account will pass on automatically to the person that you’ve named without having to pass it through probate.
Physical properties are generally going to have to go through probate, and in this case, you need to know the value of the property. For example, you should know that a standard 2,200 to 2,600 square foot roof is bound to cost homeowners anywhere from $1,000 and $4,000 to replace it fully, while professionals charge $2,000 to $8,500. When working on roofing, keep in mind that roofers charge for their work using ‘squares’, and so one ten foot-by-ten foot roof patch makes a square. This means that the average roof has between 22 and 26 squares that need to be replaced.
Hire a Professional to Help You
To make sense of the entire process, you would do well to hire a lawyer or another professional. They’re going to let you know the best way to go through the process so that it’s easier for you. To begin with, they’ll tell you what documents you need to collect in preparation for the process, which will include property and asset ownership documents. They’re also going to let you know things such as that it’s recommended that you update your estate plan once every five years. This is barring any major life events, such as moving states, marriage, or divorce.
These details should help you split your estate in the best possible way. As a result, you can improve the quality of your life, even mapping out a way to set yourself free of debt. Your loved ones are also going to be happy when they know that their future is safe from the unknown.
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