As we mentioned in previous articles, estate planning is the process of accumulating and disposing of wealth before death of an individual or married couple.
It's aim is to maximize the wealth of the estate owner.
The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes.
Drawing up a will is a must for people who want to distribute their assets to their beneficiaries in their own way upon death.
1.
Collecting your assets Before drawing up your will you must talk to your accountant, financial adviser, and any financial institution that you have investments with so you can collect all updated statements of your assets including stocks, mutual funds, and any assets that would form a part of your estate.
2.
How do you want your estate to distribute After you know how much your estate is worth, you can make an accurate distribution of your assets to your beneficiaries, if you would like to have a straight asset distribution.
3.
Having 2 people to witness your signature Remember that the people whom you want to witness your signature must have a sound mind and at the age of the majority.
You may want to have a lawyer to notarize your will or you may write your will in long-hand, also known as a holographic will which does not need to be notarized by a lawyer or witnessed by anyone.
Remember that your will must include: 1.
Your present address.
2.
A statement saying that previous wills made by you are revoked.
3.
Directions to pay for funeral expenses, debts, and taxes before your estate is distributed to your beneficiaries.
4.
The appointment of an executor.