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.