WHO NEEDS ESTATE PLANNING?
When you hear the words "estate planning" you might think it's only for the wealthy, but is it? What exactly is the purpose of estate planning and who really needs it?
AN OVERVIEW OF ESTATE PLANNING
Estate planning can seem complicated for many people so they tend to put it off until some future date. However, the truth is that estate planning is crucial no matter how old you are. With the right knowledge and help from professionals, it doesn't have to be overly complex or confusing. Here are some of the most important facts about estate planning.
WHAT IS ESTATE PLANNING
While you may think that only wealthy people with multimillion-dollar estates need to do estate planning, the term actually has a broader meaning. Your estate is a combination of all your belongings, including your liquid assets, home, vehicles, jewelry, investment portfolio, life insurance, and even pets. No matter how much your estate is worth, it's important to have a plan in place for what will happen to all of it when you pass away.
WHO SHOULD BE ESTATE PLANNING?
Another common misconception about estate planning is that you don't have to start considering it until you are retired or become an official senior citizen. However, in reality, you don't know exactly when you will pass away, so it's essential to start planning for your estate as soon as possible. If you have children or others who are financially dependent on you, it's even more vital to make sure they will be taken care of after your death.
HOW DO YOU START ESTATE PLANNING?
Your estate planning should encompass more than just deciding who receives which assets after you die. An experienced estate planning attorney can help you with all the elements: funeral arrangements, life insurance, guardianship of children, disability insurance, living will instructions, medical care preferences, distribution of assets, taxes, and more. The key to starting estate planning is when you begin accumulating valuables and establishing a family.
THE BENEFITS OF ESTATE PLANNING
With a clear estate plan, you can be sure your loved ones will be provided for and that your minor children will be raised by guardians you select. You can also ensure that your finances and medical decisions will be handled by someone you trust, rather than a court-appointed manager. Although estate planning does require an investment of time and resources, the benefits far outweigh the cost.