Choosing to create your estate plan is a responsible way to take control of your future. It can help to keep your finances secure and keep them within your Maryland family. These tips can help you to protect your money.
Create your will
Creating a will is one of the best first steps to take with estate planning. It allows you to determine how you want your assets divided among your heirs and can speed up the probate process. Without a will, probate could drag on and the court would decide who gets your money.
Designate beneficiaries
Designating your beneficiaries and determining each one to receive your assets could help protect your money and avoid probate court. Your financial accounts such as retirement and life insurance should be left to a specific first-choice beneficiary, but don’t forget to add second choices as well.
You should also update your beneficiaries whenever circumstances make it necessary. Major life events such as divorce, remarriage or the birth or adoption of a child are among the times when you should update.
Create a trust
Creating a trust to hold assets and appointing a trustee can preserve your money if you plan on leaving a large inheritance to an heir. There are many different options you can take with your trust, but if your goal is to leave assets to beneficiaries or for a minor child, the best option might be an irrevocable trust. This can prevent the assets from being subject to estate taxes and ensure that they stay in your family.
Consider a Roth IRA
A Roth IRA account is ideal for protecting finances to leave to a beneficiary. As long as that person is someone other than your spouse, they have 10 years to withdraw the money tax-free.