The musician Prince was known as a hands-on businessman with a keen attention to detail. So it was quite a shock after his death in April to learn that he had left behind a $300-million estate without a will.
Prince’s oversight means that it’s now up to probate court officials to decide what will become of his assets, including a library of unreleased music. Because of Prince’s celebrity, his case has gained lots of media attention. But the fact is that having an estate plan, including a will, is important for anyone who owns personal property.
Envisioning the period after your death isn’t pleasant, of course. But taking care of your estate planning will serve to protect your loved ones during what will be a difficult period for them. And it ensures that your wishes are carried out quickly and smoothly.
Estate planning can be complex, but a qualified professional can help you to do it as efficiently as possible. The process typically begins by creating an inventory of your assets, from real estate to bank accounts to automobiles. You then decide who you’d like to inherit various pieces of that property, and assign guardians for children and dependents.
For those with significant assets, it often makes sense to create a trust that will house those assets. Trusts let you transfer assets directly to beneficiaries after your death without court involvement. They also can allow you to control their assets during your lifetime. Trusts also provide more confidentiality than wills, which become public record as part of the probate process.
One of the key estate-planning decisions is designating someone you trust to carry out your wishes after your death. Known as the executor of your will, that person can be anyone you judge capable of handling the job. You must also select a power of attorney—a person who will have legal authority to pay your bills and handle your financial business.
Additional steps: Drafting a living will and assigning a medical power of attorney. A living will clarifies whether you want your life sustained through heroic measures while a power of attorney document empowers a designated person to make medical decisions when you are unable to.
Finally, you’ll want to make sure that the beneficiaries you’ve designated in the past—on bank and brokerage accounts, insurance policies and retirement accounts—are still the ones you want to receive those assets. If you’ve divorced and remarried, for instance, it’s likely that you’ll want to update those beneficiaries.
Estate planning is an act of responsibility and caring toward those you will leave behind. But getting it done can also bring a sense of relief and confidence—allowing you to eliminate uncertainty and focus on enjoying the present.
For more information on estate planning or to set up a living trust, contact our offices at 888.473.6931.
