Have you ever thought about planning your estate? Here are a few tips that will get you started
Planning an estate is one of those tasks that we all know we should do, but keep pushing it to a later date. The delay in planning an estate makes sense because, after all, no one wants to think of their demise or plan what will happen after they die. The thought is a bit morbid honestly. However, regardless of the depressing and looming thoughts, death is a sad yet inescapable reality of life.
Plan your estate ahead of time for the people you care about so that they don’t have to worry about finances when they are faced with hard times and grieving. Even the minimum can relieve you from guilt and responsibility.
Do you think planning an estate is a daunting task? Here is a list of tips for making the challenging tasks a bit easier for you.
1. Get insured
Funeral and burial services cost a lot of money in Australia. This makes getting funeral insurance extremely important. A funeral can cost up to $15,000 or more and plan for the hefty amount when you are already grieving is a challenging task. So plan ahead and get yourself and your family members funeral insurance.
Unlike applying for other forms of insurance, an application for funeral insurance is almost always likely to get approved.
2. Know the worth of your assets
Prepare a will for a smooth transfer of inheritance. People assume that preparing a will is a lengthy legal process that requires a lot of documentation when in actuality, all it requires is a reliable source of information.
Calculate real estate valuation and know the worth of your assets that you plan on dividing. Prepare a draft, sign it in the presence of witnesses and keep it safe.
3. Research about investment options
So you have a bit of saving lying around in your bank accounts and you are looking for stable investment options such as gold bullion. There are a lot of investment options that guarantee you a healthy return with minimal risk involved. However, these are usually long-term investments.
Understand your own preferences: Whether you want to make a long-term investment that guarantees significant returns with minimal risk or instant returns with a high risk – high return policy. If you choose the former, you can invest in capital markets while investing in the financial market is the best option if you prefer instant returns.
4. Provide information about all of your assets
Most assets cannot be transferred through a will. Such assets include your retirement accounts, the real estate having multiple owners, life insurance documents, and other valuable items. Make sure to legally cover all these items and identify who is going to inherit what.
5. Keep your will safe (but not too safe)
A lot of people forget about the most obvious thing. None of your preparation and inheritance documents are going to matter if your family is not able to find them. So keep your will safe, but at least confide the location to your lawyer.