When people think of Estate Planning, what pops up in their minds is a wealthy family with a lavish home and wealth passed down from generations. A common misbelief that has stopped many people from entering the process, thus putting oneself and their families at risk. Estate Planning plays a vital role in financial planning which helps one plan for the present and the future. Although Estate planning does have an impact on the wealthy, it impacts those with minimal means also. It acts as a tool that helps one accomplish their wants and desires.
Debunking the myth
It is imperative to debunk the common disbelief that Estate Planning is only for the rich. Many believe that if their estate is not big enough, they would not require any planning. In truth, no matter how much or less one possesses, Estate planning is essential. Estate planning can be a very simple and reasonably straightforward process if done the right way. An estate plan helps one manage their finances and assets; it allows one to make decisions that they desire, also they get to decide the distribution of their assets after their death. Uncertainty of the future is a good enough reason to give Estate Planning a chance. An individual with no family or possessions also should invest in it, as it will help answer all questions to one’s satisfaction.
Estate Planning is for all
Estate planning safeguards one’s children, partner, and other family members from legal battles, unnecessary taxes, potential loss of assets, and delays in courts. Income levels or tax brackets are no benchmark for Estate Planning. Paying bills and living expenses can be complicated for one’s family after an unexpected death. Estate Planning can save one from financial ruin. An estate plan helps avoid Probate, which can be expensive at times. It saves one’s family from making difficult decisions. It also benefits one while they are alive, Estate Planning makes one eligible for healthcare facilities like Medicare. In case of an accident, an attorney and healthcare decisions can make things easier. Even if one does not possess a million dollars, it should not stop them from making a difference to the world; an estate plan also helps one support charitable causes.
Estate Planning for the Young and needful
A person in his/her 20’s is likely busy paying off student debt or looking for better jobs and has not yet paid much attention to Estate Planning. As life is unpredictable one should always be ready with a plan to save time later. Estate Planning gives one the authority to handle their financial and healthcare decisions like bills and loan payments. This is particularly important if one gets into an accident or becomes sick. Having the right plan and documents in place helps take care of medical needs such as under what conditions one would want to live on life support. This can save one’s family from hassles. One gets to decide whom their assets go to. It could save one’s parents from the probate process and help them get all assets.
One may think they do not have much, but they should be the ones to decide where it goes. Family fighting over property is not a pleasant sight to behold. Therefore it is essential to decide beneficiaries and entitle them financial accounts. It doesn’t have to be an expensive deal for the young and needful; a few documents and the right guidance can help save time and money.
Things to consider while Estate Planning
There is a list of things that should be considered during Estate Planning. A Will or a trust which many associate with the rich is a wrong assessment. Even if one does not have significant assets, they should have a Will as it is the main component of an estate plan. It ensures the distribution of the property according to one’s wishes.
Secondly, it is best to appoint an agent or an attorney who can take decisions when an individual is unable, failing to do so, the decisions go to the court and can be against one’s wishes. Maintaining a beneficiary and a contingent beneficiary is also essential so that one’s possessions can be passed to those whom they desire. Besides this, a letter of intent also plays a vital role in deciding which asset should be given to whom. Individuals with children should also choose a guardian who is willing to raise children, in the absence of the guardianship designations the court decides whom the children will live with.
An individual with any assets should consider Estate Planning. Without one, there will be too much at stake. Protecting one’s family should be the top priority no matter how rich, or poor one is.