Estate Planning is for Everyone

Many people believe estate plans are only for extremely wealthy families who are looking to reap tax benefits. Or they may delay estate planning because they are young. Others do not understand why an estate plan is important in the first place or feel it’s too morbid a topic. But as the following list makes clear, estate planning is for everyone, regardless of age or net worth.

1. You Could Lose Capacity
What if you become incompetent and unable to manage your own affairs? Without a plan in place, the courts will often select someone to take on this role. As part of setting up an estate plan, you can choose that person yourself through a legal document called a durable power of attorney.

2. You Have Minor Children
If you have minor children, who will raise them if you were to pass away suddenly? Without a plan, a court will make that decision. Creating an estate plan means being able to nominate the guardian of your choice.

3. You Don’t Yet Have a Will
Who will inherit your money, real estate, and any heirlooms after your death? If you die without a will, your assets pass to your heirs according to your state’s laws of intestacy. Your family members (and perhaps not the ones you would choose) will receive your assets without the benefit of your direction.

4. You Are Part of a Blended Family
What if your family is the result of multiple marriages? Sixteen percent of children in the U.S. currently are a member of a blended family, according to Census data.

5. You Have a Child With Special Needs
If your child has a serious disability, you need to plan for their future. This doesn’t only mean planning for who would care for them if they require ongoing support. It also involves making sure they’ll be able to maintain access to any public assistance programs on which they may have come to rely.

6. You Want to Keep Assets in the Family
Would you prefer that your assets stay in your own family? If you do not have an estate plan, your child's spouse may wind up with your money if your child passes away prematurely. Likewise, if your child divorces their current spouse, half of your assets could go to the spouse.

7. You Want to Ensure Your Loved Ones Have Financial Security
Without you, would your spouse and children be able to survive financially? One element of a solid estate plan is life insurance.

8. You Have Retirement Accounts
Do you have an individual retirement account (IRA) or similar retirement savings account? Your estate plan process should include naming the loved ones in your life whom you want inheriting those funds. Keep in mind that these designated beneficiaries may change throughout your lifetime. You may welcome grandchildren along the way, or have a falling out with a family member, for example.

9. You Own a Business
If you own a business, even a small business, you should work with an estate planning attorney to develop a succession plan. For example, failing to name a successor puts your family at risk of losing control of the business. Take time to decide who will own and control the business after you. Put strategies in place that will help your successors flourish.

10. You Want to Avoid Probate Court
Probate is the court process your estate could face after your passing. In some cases, you cannot avoid it. However, if you have thought through your estate plan, you may be able to save your heirs a great deal of time, money, and heartache.

11. You Have a Beloved Pet
Your dog, cat, horse, or other companion pet may mean the world to you. Should you no longer be able to care for them, you might assume your family members would take on this responsibility.

Whether you haven’t yet started your estate plan or need to review and update it, contact us today for guidance.