You may not have thought about it, but you have an estate. An estate is all the property a person currently owns, regardless of type and amount. This includes real estate, bank accounts, stocks, bonds, mutual funds, life insurance policies, and personal property such as vehicles, jewelry, and furniture. As the saying goes, you can’t take it with you, and an estate plan sets out who gets your assets after your death.
A comprehensive estate plan will accomplish more than just listing who gets what. A comprehensive estate plan should take into consideration and may include:
- Identifying family, loved ones, or charities that will receive your assets after your death
- The method to avoid the time and expense of probate and transfer your assets to your beneficiaries as efficiently and inexpensively as possible
- Naming a guardian and manager of assets for any minor children
- Instructions for your care should you become disabled or otherwise unable to make those decisions yourself, including what life-prolonging measures you want taken
- Providing for family members who are unable to care for themselves or unable to manage their financial affairs
- Instructions for your funeral arrangements and payment of any final expenses surrounding your death
Estate planning is not just for the retired, elderly, or terminally ill. No one can predict what the future will bring. An unexpected death or disability can cause you, your estate, and your beneficiaries unnecessary expense and anxiety if no estate plan is in place.
If you become disabled without an estate plan in place, the court may have to appoint a guardian or conservator to make decisions for you. Wouldn’t you rather choose who will take care of you and your financial affairs if you become disabled?
If you die without an estate plan, your assets will be distributed according the state’s probate laws. This means loved ones you want to take care of after your death may not receive the assets needed to provide for them. A comprehensive estate plan can ensure your family and loved ones are properly cared for after you’re gone.
If you die without an estate plan and leave minor children, it’s possible the court could decide who they will live with and who will care for them. A proper estate plan gives you the power to make that decision.
Estate planning is for everyone and there is no reason to delay the estate planning process.