Most residents of Tennessee have heard of estate plans and know that they need to create their own. An individual may fail to make an estate plan because they assume it is simply about leaving liquid assets behind, but that is not the case at all. There are many other facets to a proper estate plan, all of which are equally important for the person filing the plan and their loved ones.
Incapacitation
One of the most important parts of an estate plan is who will make the medical and financial decisions of the individual creating the plan in the event of their incapacitation. Incapacitation can come about suddenly due to an unexpected accident or after a lengthy illness. Having a plan in place well before it is necessary ensures that all wishes are met.
Death
The part of an estate plan that discusses death is where the individual filing it can decide whom they leave their assets to after their death. Bank accounts are only part of that equation, though. This is also the opportunity to discuss who is set to receive retirement accounts, life insurance policies and other assets.
Taxes
Different states have different laws concerning taxes that are associated with an inheritance. Depending on the state where the estate plan is filed, there will need to be a section about who is responsible for paying the taxes owed by the estate. This part of the plan ensures that all unpaid debt is covered and not passed on to any heirs.
The first and perhaps most important part of building an estate plan is contacting an attorney who is well-versed in their state’s estate laws. This attorney may help their client gather information about existing assets and complete any forms that are needed to ensure their client’s wishes are met.
