The best time to start thinking about financial planning for the future is always right now. However, post-tax season tends to be an especially good time to consider estate planning, as many residents of Nevada have just taken stock of their finances. While there are many things to consider, there are a few items of higher importance that most individuals choose to address first.
Ensuring powers of attorney are up to date tends to be top of any estate planning list. Having a living will and designating financial and medical power of attorney are extremely important. Just as necessary, though, is ensuring that the information remains relevant, as life events such as births, deaths, marriages and divorces may affect these documents, just as they can affect the information and relevancy of wills and trusts.
Many people may mistakenly believe trusts are only for the wealthiest, but this is far from the case. Anyone who wishes to protect their family and designate how their assets will be distributed can benefit from an estate plan including their important documents. A yearly tax-time review of these may help ensure that beneficiary designations are up to date and that any new assets are appropriately titled.
Appropriate estate planning and frequent review of all pertinent documentation can help protect beneficiaries in other ways too. If residents of Nevada have not already done so, post-tax season may be a good time to consider appointing a guardian for any minor children who are meant to inherit assets, as minors cannot inherit funds without court supervision. Formally establishing a guardian ahead of time can help prevent the need for court intervention on this issue. These are only a few of the many financial eventualities to consider during estate planning; a seasoned attorney can help provide guidance throughout this important but sometimes complicated process.
Source: katv.com, “Why Tax Time is the Best Time to Prepare for Your Financial Future“, April 28, 2017