An estate plan provides a way for you to think ahead and protect your assets. Maintaining your plan requires ongoing effort throughout your life.
Careful preparation can optimize the value and function of your plan. Knowing how to finetune your strategy can help you determine your next step.
Many consider life insurance to be a fringe aspect of estate planning. However, if people rely on your income to provide necessities, having life insurance can add tremendous value to your plan. Dependents including children, a spouse or a disabled relative can fall back on a life insurance policy to afford expenses including housing costs, medical needs and day-to-day necessities.
Another way to improve your plan is to consider giving away to a charitable cause. Is there a scholarship fund or non-profit organization that holds special meaning to you? Contributing some of your assets to a charity may allow you to experience a new kind of satisfaction.
A staggering number of people have not thought about end-of-life formalities. In fact, according to CNBC, nearly half of all Americans have no estate plan. Even if you have a plan, neglecting to update it can render it useless when you need it most.
Any significant development in your life will require you to review your strategy. As a rule of thumb, reviewing your plan every few years can help you preserve its longevity and integrity.
Having an estate plan can give guidance and comfort to your loved ones. Your diligence in maintaining it throughout your life can help make a difference even after your absence.