We always hear of people giving us “advice” and “tips” on how to be prepared for the day when we die – papers and documentation we should sort out now so beneficiaries will have less problems later, assets to quantify and executors to appoint. They all sound very complicated and tedious, but while they are not necessarily so, they must be done.

This is all part of what we know as estate planning – literally planning our estate before we kick the bucket. Whether we like the idea or not, this has to be done so the ones we love will know and understand our plans and the reasons behind them.

To be honest, the list can get pretty endless once we start thinking about what we have to settle before D-day. But there are a few chores that are a priority:

1. Quantifying our assets. This includes the value of our home and businesses (if any), cars and anything of monetary value, such as bonds, trusts and returns on investments. Keeping all documents in a safe place starting from now will be a very good idea, be it a bank’s safe deposit box or a home safe. On top of those documents, a tabulation or closest estimate of their value should be included. As long as we have physical proof of the value of our assets, others will be able to know its true worth and understand what happens to them next.

2. Valuing physical items. This means putting a price tag on anything of value aside from bank balances, investments, bonds and shares. This part of the job literally does a valuation of all material items that we have – family heirlooms, paintings, jewelry, antique furniture and even vintage items – in short, anything that can be considered valuable. Putting a minimum value like 100 dollars, will help us in identifying what is worth something and what is just of sentimental value.

3. Updating our insurance and other beneficiaries’ lists. Whether it is our insurance policy or employment fund, updating the beneficiaries for them will make sure whatever monies we have will go to those we intend to benefit. Many a time there has been a story where this list was not updated and the money goes to an ex-spouse, deceased parent or even only to 2 of 4 children. Not updating the list also means a bigger portion will go (unnecessarily) to the state for administration. In some countries, the state can take up to 40 percent of the fund, which means our beneficiaries end up with just a little over half of what we intended to give them.

4. Writing a will. Some may consider this a jinx but writing a will is like updating our beneficiaries’ list. It cuts down on administrative processes which will happen when the state needs to apportion out to our next of kin. Again, this helps to make sure the ones we love end up with everything we want them to have. Not writing a will make mean a longer timeframe for all assets to be settled and possibly smaller cut for beneficiaries.

5. Updating the will. If there is already a will, we should really check on it to make sure it still applies. Value of our assets may have grown, for instance, meaning there is a portion still unaccounted for (which the state will be all too willing to take). On the other hand, the value may have dropped, which means there needs to be a reassessment of each beneficiary’s portion. Updating a will does not take long and should be done every couple of years.

6. Listing out our debts. This has to be the least appealing part of estate planning. Nobody likes putting down on paper what we owe other people for our credit cards, mortgage balances and/or loans, but this is very necessary as it gives the true picture of our worth. Doing this is good practice for us to reduce and simplify our lifestyle as it shows us if we are indeed living beyond our means.

Naturally, doing all of these will not be of much good if we were to keep it to ourselves. Having a good estate executor or lawyer, preferably one we know will have our family’s best interests at heart will ensure our wishes are carried out the way we want them to be. It also means we can truly rest in peace knowing our loved ones are taken care of.

Author Bio: Winston Dunbar is a foremost expert in hispanic estate planning. Visit his site for more information on Funerarias today

Category: Family Concerns
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