Estate planning is an important step to take, even if you or your family are not particularly wealthy. Provides protection for you, your children and beneficiaries so that things are done the way you prefer when you die or become incapacitated. In a society centered on youth, it is difficult to contemplate aging, let alone death. Many young people assume, incorrectly, that estate planning is only for the elderly or the very rich.
There are four reasons why everyone, regardless of age, should consider preparing at least some estate planning documents. Yes, your estate plan can do the basics, such as establishing who in your life should receive your assets. But it also does much more than that. Let's take a look at the ways your estate plans can work for you.
Everyone has a heritage, and all their assets, both physical and intellectual, form that heritage. You don't have to be rich or have a certain amount of assets to use the word “wealth”. People think estate planning is for the rich only because they usually hear about it in that context; a film shows a wealthy family gathered around a lawyer reading from a will, an actor's estate gives permission to use his image, etc. Actually, you have a property even though all you have is the clothes you're wearing.
While it's vital to create a plan for your estate if you have a lot of property and money, it's also important to develop a plan if you don't have much. The answer is no, even the most basic plan protects your family and ensures that your financial goals are met after you die. Your lawyer will guide you to the best plan regardless of your level of financial wealth. You're not too ____ for an estate plan.
Many young people, including young professionals and young families, think they are too young to need a will. Similarly, people often think that they are too poor to need a will and that estate planning is only for the rich. Others assume that they are too healthy to need a will and don't need to plan until their health worsens. Estate planning is much more than just a will.
However, the question on many people's minds is why they even need a will. Not only can a trust prevent probate from being legalized, but it can also provide specific terms on when and how your estate, regardless of size, will be distributed to your heirs. However, without an estate plan, naming a minor child as the beneficiary may not protect your financial interests; instead, it could have the opposite result. Small estates with wills can go through a quicker and less expensive process, but they still have to be approved by the probate court.
Many people don't even know if their state imposes an additional estate or inheritance tax beyond the federal tax. Creating an estate plan now also ensures that dependents in your care and pets receive assistance after your death. Comprehensive estate plans will take into account the value of not only your retirement and investments, but also your possessions. Just as you would prepare health and long-term policies in case of illness, estate planning allows you to designate how you want your assets to be distributed after death.
Estate planning creates an opportunity to ensure that those wishes are met and to talk to your family before illness or death to communicate those wishes to them, help them understand, and ensure that no matter what your wishes are, you have someone who is capable, prepared and comfortable carrying out your desires. Of course, your probate lawyer won't survey your family, but the process is valuable in encouraging and sparking these conversations. When you die intestate (without a will or other estate plans), the courts will ultimately make all decisions about your properties and assets. Work with a Professional to Learn Your Options You don't have to complete your estate planning alone.
In the same way, I hear that “my estate is not complicated; I have a house, a bank account and two adult children. Probate is a court-supervised procedure that validates a will and oversees the distribution of its estate. Even if you don't have a huge wealth or don't own a lot of assets right now, having a succession plan is still important. .
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