We recently discussed the purpose of estate valuation. This is an important part of the estate plan. If you are in the process of planning out the estate so that your loved ones have a plan when you pass away, you might come to realize that the valuation is vitally important.
Most people who are coming up with their estate plans want to make sure that their loved ones aren’t left with a large tax burden. There are ways that you can set up an estate to minimize the tax burden, so make sure that you include this in your goals for the plan if necessary.
Another thing to consider is that you might not want your loved ones to have to go through the time and expense of having to deal with a probate issue. One thing to do if this is your goal is make sure that your plan is clear. You can even discuss the plan with your loved ones so that they can get clarification for any questions they have.
We realize that having this discussion with your family members now might not be something you are looking forward to, but it can help you ensure that your wishes are followed when you pass away. For some people, knowing what to expect will take away the knee-jerk reaction that might lead them to contest an estate plan.
Once you create your estate plan, make a note to review it periodically. This can help you address changes in your wishes, your circumstances or your goals. It is important for your estate plan to always be up to date.