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Should you simplify assets as you approach estate planning?

On Behalf of | Sep 21, 2023 | Estate Planning

The estate planning process is, in essence, all about planning for the future. And, oftentimes, simple plans are the best ones, both for those who are drafting the estate plans and the ones who will benefit from the plans. Overly complicated estate plans are usually best avoided.

How can you simplify your estate plan while also accounting for all of your assets?

One recent news article suggested that simplifying your assets first could be the best path forward.

Many of the people in Texas who approach estate planning are doing so at a later stage of life. Typically, these individuals and families have accumulated quite a range of assets over the course of decades – real property, retirement accounts, vehicles, artwork and other investments – the list could go on.

If the goal of your estate plan really is to make things as easy as possible on those who will need to implement the plan and benefit from it, the recent news article suggests that those myriad assets could be simplified prior to the point when a transition in ownership will take place.

Steps toward simplification

So, how can you simplify your assets? Well, the recent article suggested that financial accounts could be consolidated at one specific financial institution, for example.

Another option might be to sell off certain assets and then use the proceeds to pay the premiums for life insurance policies with guaranteed payouts – which have the added benefit of not being included in the probate process. Then, of course, funds could always be transferred now, instead of making heirs and beneficiaries wait.

There could be many different options for you to consider if you want to simplify your assets. Your financial situation will be unique and so will your estate plan. Be sure to consider all of the possible options that fit your circumstances and family dynamics.

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