When planning your estate, make sure you commit enough assets to cover expenses in your estate plan. Unfortunately, when you die, your expenses live on. Furthermore, your executor and beneficiaries are not responsible for payment of these expenses. In most common estates, the expenses your executor will most likely handle are some of the following:

• Unsecured debt. This includes credit cards, medical bills, and utility bills. Other types of expenses for homeowners are home repairs, property tax, and home insurance.

• Secured debt. These debts include car loans and mortgages. Typically, these expenses pass to the beneficiary that inherits the asset if they accept the bequest.

• Administrative expenses. These expenses include funeral costs, estate administration costs, attorney fees, and other professional services needed to administer the estate.

Depending on the complexity of your estate, not all expenses listed above will arise. However, for the expenses that may occur, it’s necessary to set aside assets to cover expenses in your estate plan.

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