No one knows when their time will come, but preparing for the unexpected is essential. That’s why it’s never too early to start your estate plan.
What are some things you need to consider when creating an estate plan?
An estate plan is not just for the old and wealthy
An estate plan is a way to protect your assets and family in the event of your death or incapacity. It can also help to ensure that your wishes are carried out according to your specifications.
The components of an estate plan can vary depending on your circumstances, but typically it will include a will, trusts, powers of attorney and a health care directive.
A will is a legal document that states who you want to inherit your assets and their distribution. Trusts are also legal documents, but they can offer more flexibility than a will regarding how and when assets are distributed.
Powers of attorney give someone else the authority to make financial and medical decisions on your behalf if you’re somehow incapacitated. They’re often used in end-of-life planning but are also important in case of unexpected events, like a traumatic accident.
To get started, you need to decide how you want your estate plan to look. Ask yourself things like:
- Do you want everything to go to your children?
- Would you like to set up a trust?
- What are your funeral wishes?
If you have a spouse or partner, they should be part of this planning process.
Once you understand what you want your plan to look like, you want to ensure you have the best legal representation to provide guidance and advice based on your specific goals. While putting together an estate plan may seem daunting, you will feel better knowing that your loved ones will be taken care of when you can’t be there.