Why a will isn’t an estate plan

Why a will isn’t an estate plan

| Oct 2, 2017 | Estate Planning |

While a will may be an effective part of an Ohio resident’s estate plan, it not necessarily sufficient on its own. For instance, assets such as an individual retirement account or a life insurance policy will not pass to a beneficiary under a will. Assets such as those will go to a person who has been specifically named a beneficiary of those accounts.

It may be a good idea to review beneficiary designations on a regular basis. It may be especially important to do so after a significant life event. Those who have an IRA may wish to engage in proper estate planning as it may be possible to provide for several generations with the proceeds in a single account. It may also be possible to provide tax benefits for beneficiaries as well. To accomplish these goals, it may be worthwhile to create a customized beneficiary form that can be as detailed as an owner wants it to be.

The creation of a comprehensive estate plan may make it possible for an individual to exert greater control of assets while alive and after death. By naming beneficiaries to accounts such as an IRA, a parent may increase the odds that a child has the resources necessary to function as an adult. A grandparent may also be able to provide for a grandchild or other future descendants and cement his or her legacy.

An attorney may be able to help an individual create an estate plan. It may be possible to use wills, trusts and beneficiary designations to help a person meet his or her plan goals. Proper estate planning during life may also prevent family disputes or other challenges to a will or other portions of an estate plan after an individual passes away.