Estate Planning For The Immediate Costs After Your Death
Estate planning is generally considered to have a long-term focus. Your goal, after all, is to help your family and others improve their lives forever. But don't forget about the immediate days and weeks after your passing. In fact, you may need to provide immediately accessible funds for a number of needs. Here are a few of these and how you can plan for them.
What Should You Provide Immediate Funds For?
Every will must go through probate court to be confirmed. And if a person dies without a will, the probate court oversees their estate. Both of these take time. However, life goes on for your heirs, assets, and other obligations.
For example, the most pressing early need is for your funeral and final medical expenses. How will your family pay for a funeral which cannot wait until probate is decided? Another common need is by your partner/spouse and any dependents. Without your income to provide for them, how long will they be able to pay bills, put food on the table, and gas up their vehicles?
In addition, your pets need someone to continue caring for them. Some animals, like horses or aging house pets, may need expensive upkeep. Who will provide for them and pay their immediate costs? What about your home? Someone must pay the mortgage, insurance, and taxes. Utility bills arrive. Repairs may need to be done. And it must be secured if no one will live in it.
How Can You Provide Immediate Funds?
You have a number of choices for freeing up money as quickly as possible. Certainly, having a legally enforceable will is one key. This makes probate as fast and smooth as possible so that the executor can begin caring for the property, pets, and other obligations. In addition, use proper beneficiary designations to ensure access to specific financial accounts by specific persons.
Many people also use trusts within their estate planning. A trust does not have to go through probate court, so the backup trustee can take over directly from you and continue paying things and caring for things as you would. Use a trust for large assets, such as real estate, or to care for your loved ones or pets.
Life insurance policies are another great way to provide short-term relief. A life insurance policy is generally quickly accessible by the beneficiary with little more than a death certificate. Targeted life insurance policies may be used to provide for your spouse, dependents, funeral expenses, pets, and more.
Where to Start
No matter what or who may need access to your funds quickly after your death, the best place to begin is professional estate planning. Your estate planner will work with you to use the tools above as well as others to ensure your home, pets, children, spouse, and others don't suffer unnecessarily from your passing. Call today to make an appointment.
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