5 Facts to Help You Understanding the Importance of Estate Planning

5 Facts to Help You Understanding the Importance of Estate Planning.

When is the last time you stayed in a castle?

That is the first thing you picture when someone starts talking about their estate, right?

It would be nice if we all had several million dollars and a boat to leave for each of our kids. But you do not need to be on a first-name basis with Bill Gates to start deciding what to do with your assets in the event of your death.

We have put together these five important facts to help you understand estate planning. Life is unpredictable, and you do not want to leave your family unprepared.

Keep reading to learn more.

You Have an Estate Even if You Rent

Your estate is everything you own and all the financial information attached to your name.

The word “estate” usually sends people daydreaming about mansions and golf courses. But if you own a car and have a bank account, those count as part of your estate, legally speaking.

Even if you are still working your way out of debt and renting an apartment, everyone has an estate worth planning.

Your Will is Just the Beginning

Estate planning is a detailed process that takes time. It is not just one document, and there is so much more to plan besides which kid gets your novelty coin collection.

Planning an estate typically includes:

  • Assigning financial power of attorney
  • Assigning medical power of attorney
  • Creating advance directives for your healthcare
  • Putting aside money for funeral expenses
  • Creating a living trust

Do not stress! Start slowly with a will, and keep scheduling the time to add more as you keep thinking about what you want.

If You Do not Decide, Uncle Sam Will

Anyone who dies without a will or any kind of estate planning leaves the future of all of their assets to the state government.

This does not mean the state government takes everything you have. But it does mean you have no way of knowing which relatives will get what.

It is Not as Expensive as You Think

You do not have to spend a fortune to plan your estate.

Though there are legal fees involved with filing these documents, paying ahead of time reduces expenses for your family after your death. While you are spacing out appointments to estate plan with your family lawyer, you will have time to save up for these fees.

You Are Never Too Young to Start

Estate planning is not just for AARP members.

Because estate planning is a process, the sooner you start, the better. And while death is not a light-hearted subject, it is still a significant financial event you need to be prepared for.

Think of it as investing in your future and investing in your family. The sooner you start the estate planning process, the more time you will have to figure out every last detail.

Still Do Not Understand Estate Planning?

For even more information to help you understand estate planning, check out more from our blog.

Better yet, do not wait.

Schedule a consultation with one of our skilled estate lawyers today.

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5 Helpful Tips of Estate Planning so You Don’t Pull Your Hair Out

Nobody enjoys thinking about their mortality, and sorting through legal documents is not what most people would call a good time. This hesitation makes sorting through legal documents about your eventual death seem dangerously stressful and, perhaps, dull.

That is probably why half of us do not have a will of any kind.

Relax. We have got some tips that help take the stress out of preparing for your future.

Keep reading to learn five essential tips of estate planning.

Know Your Worth

The most essential first step of estate planning is doing an inventory of all your assets.

Your total estate worth is so much more than just land you own. Any retirement fund, life insurance plan, Roth IRA, stock investments, collector’s items, and even your debt count as part of your estate.

Keep a detailed account of all your debts and assets in a safe place with the rest of your estate planning documents. Wherever you decide to keep these documents, make sure your family can quickly get to them.

Lawyer Up

The next thing you will need is an estate planning attorney. They will be able to help you navigate things like property taxes and drawing up your will.

Speaking of attorneys… Identify who you want to have power of attorney over you medically and financially.

Okay, so having power of attorney does not make you a lawyer. But whoever you assign power of attorney will be able to make decisions for you if you become unable to make those decisions for yourself for any reason.

Ex: If you are rendered unconscious in an accident, someone needs to be able to give consent for critical medical procedures.

Where There is a Will…

Your living will and last will might be the most important parts of your estate planning.

living will is also called an advance directive. It gives detailed instructions for your medical and financial power of attorney, so they know how to meet your needs best while you are still alive.

Your last will and testament give detailed instructions for what to do immediately following your death.

Plan Your Funeral, So They Do Not Have To

One of the most helpful tips of estate planning is putting money aside for your funeral arrangements in advance.

Do you want to donate your organs to people who need them? Would you prefer to be buried, or cremated?

Spell out your preferences, so your family has less to worry about.

Trust Your Beneficiaries

You get to pass on everything you own to the people you love two different ways:

With a trust; this dictates exactly who gets your property without going through a public court. Your trust determines who gets your car, your house, etc.

The people you name as beneficiaries will inherit the assets you own that are not physical pieces of property; including, bank balances, stocks, investments, etc.

More Tips for Estate Planning

For even more helpful legal information and tips of estate planning, stay tuned for more updates on our blog.

Do not be shy. Ask for a consultation with one of our skilled legal professionals today.

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