Why Everyone Needs an Estate Plan
The Importance of Estate Planning
Estate Planning is for Everyone, Not Just the Wealthy
Financial planners know that most people need to have estate plans, no matter how much or even how little money they have, as explained in this recent article “I’m a financial planner, and there are 3 reasons everyone needs an estate plan no matter how much money you have” from Business Insider. An estate plan includes healthcare directives and identifies guardians for minor children in the event you and your spouse die unexpectedly. It also can be created to avoid your family from having to go through probate court.
Skipping this part of your overall financial and legal life could put you, your assets, and your family members at risk. Estate planning is done to protect you and your loved ones. That’s just one reason why everyone needs an estate plan. Having an estate plan protects you while you are living.
The Components of an Estate Plan
Estate Planning Protects Your Assets and Loved Ones
An advance healthcare directive or healthcare proxy. These documents stipulate how you want to be treated, if you are alive but so sick or injured that you can’t provide directions. You may want to have a Do Not Resuscitate Order (DNR).
Powers Of Attorney: This legal document outlines who can represent you in legal, medical, or financial matters, if you are not able to do so.
The Role of a Will and Trust in Estate Planning
Estate Planning Protects Your Children
Seeking the Help of an Estate Planning Attorney
Meet with an estate planning attorney familiar with the laws of your state. An estate planning attorney will know the estate and tax laws that apply to you and your family.
Reference: Business Insider (June 12, 2020) “I’m a financial planner, and there are 3 reasons everyone needs an estate plan no matter how much money you have”