(Newswire.net — February 19, 2018) — Doctors, in general, hate to do two things, and those are lawyers and unnecessary paperwork. It is not surprising that many families of physicians are behind their life insurances, lacking both will and also the necessary plan to ensure that their spouses and their children would be financially stable if they should die prematurely. Estate planning can seem morbid, and unnecessarily time-consuming but there are some easy things which you should do to start your own estate plans if you are a physician.
In this article, you shall learn about the fundamentals which physicians need to take care of so that they can make their own estate plans.
Get long-term life insurance
Term insurances are the purest, cheapest and the simplest forms of life insurances and it is, in general, the only type of life insurance policy which most families of physicians need. It will cover you for a specified period, the term of your policy, and will pay a benefit in the unfortunate event of your death. 20-year term plans are mostly adequate and appropriate for most families of physicians as it will cover the period between now and the time when your children would be ready to go and start their colleges.
It will also allow you time to get adequate equity in your house, while you plan to start your retirement funds. Your children’s college funds and life insurances are mostly free from income taxes, and the benefits that you get from your long-term loan is enough to help you buy a reasonably good home and send your children off to college while getting a decent monthly income for some years. Thus, you must look for long-term plans when you plan to secure your estates and do your estate planning. Check out all the options you have with your insurance agent, try to hire agents who do not represent only one company as that will help you to secure a better deal.
Make a proper will
If you have an estate of around two million dollars or less (an amount which is common for many young doctors), then you can easily get a simple will made. It will determine who will get to raise your children, and who will be able to handle the assets that you leave behind, and who will get your belongings and possessions, in the event of your death. Laws regarding what will happen to your belongings if you fail to leave behind a will, vary from state to state. However, it is essential that you give out proper instructions regarding the future of your belongings and your financial dealings in your will.
Check beneficiary designation
Certain assets like your retirement accounts, or your college saving plan, your health saving account and your property dealing account which are held in joint titles can at times pass on to your heirs and your beneficiaries by a particular process known as will substitute. Assets which are transferred by the will substitute have a specific process which will determine what will happen to them in the event of your death. Joint assets pass on to the surviving joint tenants. Retirement accounts will similarly pass on to the beneficiary who is named, and the same happens with your health saving account. It can seem useless, but you may find that no beneficiary designation is left for accounts to minor children or for properties left behind which were held jointly with ex-spouses. Thus it is essential that you name the designations of your beneficiaries correctly.
You can visit a professional to get all your queries sorted and answered regarding estate planning for doctors. They can guide you as per your present financial situation as well as your plans and aspirations. Consultants are of great help when you are confused about your options.
Conclusion
In today’s age, it is vital that everyone secure their future and also of their children. Estate planning is critical in this respect. It not only leaves a clear-cut blueprint of your financial dealings for the future but also assures that your family remains financially secure in the unfortunate event of your death. Hopefully, from this article, you will have got some idea about the importance and the different fundamentals of estate planning for doctors and how you can efficiently do it. Financial planning for doctors is an often neglected aspect for most doctors, and it is imperative that you do not ignore your finances.