Page 3 - Extra River Valley and Ozarks Jan 2015

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EXTRA SUNDAY, JANUARY 25, 2015 • 3VV
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Steps involved with
hile estate planning may not be the first thing on the minds of those who are younger than 50, it may be beneficial to at least think about the subject
long before the aging milestone.
Although inevitable, death is an emotional subject that’s difficult to discuss. While estate planning can make people uncomfortable, it is an essential part of securing assets for future generations and can make a death in the family easier for loved ones to handle.
Steve Smith, who is the community president for Simmons First Bank in Clinton, said planning early is the key to getting things done correctly.
“The earlier the better,” Smith said, “because you never know for sure when it’s going to turn into an estate.”
Estate planning is an umbrella term that refers to a host of things that must be done prior to a person’s death, including writing a will and even making funeral arrangements. Estate planning attempts to eliminate financial uncertainties and maximize the value of an estate, and allows men and women to state their wishes with regard to long-term health care and guardianship for their children.
When done right, estate planning can prevent family feuds and ensure that the deceased’s estate stays in the hands of family rather than being relegated to the government. Estate planning can be a complex process, so men and women should seek help to ensure that the process goes smoothly.
Getting started
As Smith said, estate planning should begin early in a person’s life, especially for young parents. It’s easy to talk about saving for a home or retirement, but it’s not so simple to discuss who will care for your children should you die while they are still minors.
“If you start young, it becomes easier,” Smith said. “Get it started, and then you just keep it up to date.”
Those who are not able to sort through these answers on their own should enlist the help of an attorney or a financial adviser, both of whom can take some of the emotion out of the discussion and put it in more practical terms.
The will
A will is an important component of estate planning. Without clearly and legally spelling out your wishes, there is no guarantee that those wishes will be honored. It will be up to a state or province to make potentially life-altering decisions that can impact your surviving family members, and
the only way to ensure that your wishes will be carried out is to put them into a will.
Although men and women can write their own wills, many people prefer to seek the assistance of an attorney, who can make sure all necessary details are included in the will.
Smith cautions against getting a will kit.
“It’s best to use an attorney,” Smith said, “in order to avoid some of the pitfalls.”
Smith said things are simplified if a spouse exists with joint holdings.
Medical directives
In addition to a will, estate planning includes your wishes if you become incapacitated or suffer from a serious medical condition that precludes you from making decisions about your care and finances. Spouses can be named to make important health decisions, but you may want to indicate other information, such as life-support measures or organ donation as well. If you have strong opinions on treatment, medical directives and living wills are a necessity.
Funeral arrangements
Another aspect of estate planning concerns funeral arrangements. Many people prefer to make their own funeral and burial plans so these heart-wrenching decisions do not fall on the shoulders of grieving family members. Funeral planning may include choosing a burial plot, selecting a casket, indicating cremation and paying for everything in advance so there is no financial burden on surviving family members.
According to the National Funeral Directors Association, the median cost of a funeral with burial in the United States is $8,343. That’s a considerable expense that you may not want surviving family members to pay.
The easiest way to secure the funds for the funeral and burial is to maintain a life insurance policy.
“It would be wise to have an insurance policy in place as part of the estate-planning process,” Smith said.
Estate planning is a process that is difficult to discuss but one that is essential to maximize your assets and ensure that your end-of-life wishes are honored.
— Courtesy of Metro Creative Services, with contributions by Bruce Guthrie, special sections writer
Experts say the key to effective estate planning is to begin as early as possible, especially when a person becomes a parent.
A will is critical when estate planning.Without clear instructions, it is difficult for the deceased’s wishes to be carried out.