It can be uncomfortable to think about planning for life after you pass, but estate planning early on will save money and protect your loved ones. Here are 5 points everyone needs to understand about estate planning:
1. When people fail to plan properly, their estate goes to probate. This is a legal process where a court determines what happens to your assets; it’s costly and lengthy for living family members, and can challenge familial relationships.
2. For people with children, proper estate planning will allow you to identify new guardians, communicate future wishes, and secure their financial safety.
3. Estate planning also protects you when you’re alive. In the event you become temporarily incapacitated, a Power of Attorney form needs to be presented to give someone the authority to handle your financial matters.
4. For business owners, succession planning should be part of estate planning. What happens to your business? Who takes it over? Planning is critical to business survival.
5. The idea that estate planning is only for wealthy individuals is a myth.
You can’t plan for everything that the future will bring, but you can prepare for this inevitable situation and protect your wishes, assets, and family. If you don’t have an estate plan, PLEASE reach out to an attorney to get one drafted. We work with many attorneys we love!