Estate planning is not only for the rich or elderly. It is for you and everyone else. Most people think they are either too young to create an estate plan, or they underestimate the size of their estate. Many fall under the misconception that they don’t have enough to warrant the need to develop a will or a trust.
At the very least, consider the following: if you pass away without first developing an estate plan, the fate of your assets are outside your influence and control. If you are a single parent, the person who becomes the guardian of your children will be determined by the government.
This person may or may not have been the person you would’ve chosen. Their values may be different than yours, and your children will be raised in a way you didn’t intend.
Questions Everyone Should Consider
You have likely taken on debt—and this is normal. If you have financed a home, a car, or even a private student loan, how will they be handled?
When you create an estate plan, you will decide where your assets go. The attorney who advises you in regards to your estate plan will assist you with other issues:
- If your beneficiary is a minor, who will oversee his or her finances?
- Have you updated your life insurance and retirement account beneficiaries?
- Have you considered an advanced healthcare directive?
- Do you have a durable financial power of attorney?
By law retirement accounts cannot be put into a trust. For these, you will have to assign beneficiaries. Life insurance is a great way to provide for your family in your absence. But you don’t want it to go to someone you don’t want it to.
Update your beneficiaries throughout your life. If you have a former spouse and then you remarried, you would likely need to update your estate plan, your life insurance, and your retirement account beneficiary.
Advanced healthcare directives allow you to choose which medical procedures can be performed on you in the event you are unable to communicate your wishes. Furthermore, you can choose who will make medical decisions on your behalf.
This Applies To Everyone
When you sit down with an estate planning attorney, you will do far more than just determine how your assets will be distributed—but they will do that too. They will also advise you on how to do it. Do you need a will or a trust? They are different tools at your disposal. Understanding the differences between both is the path towards knowing which is right for you. And you can be in a position to create both.
Regardless of whether you think you have enough assets to create an estate plan (you do), there are elements of estate planning that pertain to everyone.
Elder Advisors Law
We believe in estate planning as a means to protect your assets while taking care of your loved ones. This is why offer complimentary workshops to help you understand the fundamentals of estate planning and asset protection. Reserve your space for you and your family in Janesville, Wisconsin, or Wales. If you have more immediate concerns about estate planning, we can be reached at (844) 211-1392.
Elder Advisors Law
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