Preparing your estate is one of the best things that you can do to ensure that your family and friends get everything that you want them to get when you pass away. If you die without a fill, you die intestate. This means that your family will need to go through the probate court and identify all of your assets. The court can require that they sell your assets to pay all of your debts and leave your family with either or much less than you expected. You need to know some clear and basic things before you prepare your estate.
Valid Will
Always make sure that you meet the requirements of your state and have a valid will. Many states require that you sign the will when you are in a good state of mind. The document should have the names and addresses of two witnesses at the bottom. Though you do not need to have the will notarized, you may need to have witnesses sign it who will not benefit from your estate. File the will in the probate court where you live. You may want to keep a copy of your official will in a safe place inside your home also.
Create an Inventory
Before crafting your will, create an inventory of all the assets that you own. This should include real estate such as your house and vehicles along with anything of value. You do not need to inventory everything in your closet or all of the books on your shelves. The inventory should include anything valuable that your heirs might sell to pay your debts. If you want certain people to receive specific items, make note of them in your will. Most areas allow heirs to inherit property, even if you have debts.
Think About Your Home
When you pass away with a will, you can list who you want to inherit your home. A recent act requires that the lender who holds your mortgage must provide the heir with the same benefits that you have. It also allows the heir to take over your existing mortgage at your current rate and payments. Dying without a will means that your loved ones may not get your home. Not only can the lender demand that they pay the total balance due, but the bank may stop them from getting information about the loan.
Identify an Executor
An estate executor or administrator is someone who is responsible for handling your estate and following the wishes in your will. Not everyone can serve as an executor though because it depends on the requirements of your state. According to Nolo for example, Texas requires that executors be of sound mind and body and legal age. You typically want to choose someone who lives in the state and near your home as they will need to go to court and take care of your property. It’s helpful to choose someone you trust to fulfill your last wishes too.
Name Your Beneficiaries
Your beneficiaries are individuals who receive pieces of your property. They can be the same as your heirs, but beneficiaries can also inherit things that you do not include in your will. A good example is your life insurance policy. Insurers allow you to list one or more beneficiaries on your policy. They can apply for the benefits and use the funds to pay your funeral costs and to care for your property as it goes through probate. Both retirement and bank accounts allow you to list beneficiaries and name people who will inherit your money.
Use Legal Professionals
No one expects to pass away, but many people die every year without planning for what will happen to their loved ones. No matter where you live, use a legal professional to make sure that you understand the probate laws in your state. For example, if you live in Texas, a Houston probate attorney will walk you through the process of writing a will and can file it for you as well as talk about your options for creating a trust. Your attorney ensures that you plan for anything that might happen and that your family avoids some of the hassles that they would otherwise face. With legal help, you make sure that your family follows your last wishes.