Why You Need Estate Planning
Why You Need Estate Planning
No matter how old you are or what your net worth is, having an estate plan is crucial to the safety and comfort of your family after you pass; sorry to sound morbid but it is the truth. You have worked your lifetime or at least a number of years to build what you have and provide for your family. If you do not put an estate plan in place before your death, then you can be leaving the things you have worked so hard to earn go to chance. The perfect time to put an estate plan on paper is right now; there is no minimum age or net worth.
Should you decide that an estate plan is not in your deck of cards, then all possessions, any minor children, etc. will be decided by the government; while they may try to divide up your estate evenly and fairly, things may not go where you want them to. Suppose you want your estate to be donated to charity, that may not happen if you do not put down an estate plan with that detail written in there.
Another reason that having an estate plan is a good idea is because it enables the estate to be divided fairly, or at least according to the individual, and more importantly, it is divided legally. Without the plan, family quarrels are a large possibility since some people may feel like they got an unfair amount from the estate and that the estate executor, who is appointed by the individual to manage the division of the estate, has treated others unfairly. This scenario reeks of lawsuits and family feuds. Avoid this catastrophe with an estate plan.
No estate plan also means the possibility of probate, should the division of the estate not go smoothly. Having to go through the process of probate halts the process of dividing the estate and means heavy costs that can be hard to manage.
Even if you do not want to do an extensive estate plan and you do not have a family compound like the Kennedys, you can and should still do something. You should tell your family where you keep your private and confidential documents for things like accounts, policies, etc. You should write a will and letter of instructions. Designate a power of attorney/ executor of the estate. Lastly, make sure all your information such as accounts, names, passwords, etc. are all up-to-date.
Having a way to ensure your family's safety and comfort is not something you should take lightly and estate planning does not have to be a painful, stressful, or long process.
No matter how old you are or what your net worth is, having an estate plan is crucial to the safety and comfort of your family after you pass; sorry to sound morbid but it is the truth. You have worked your lifetime or at least a number of years to build what you have and provide for your family. If you do not put an estate plan in place before your death, then you can be leaving the things you have worked so hard to earn go to chance. The perfect time to put an estate plan on paper is right now; there is no minimum age or net worth.
Should you decide that an estate plan is not in your deck of cards, then all possessions, any minor children, etc. will be decided by the government; while they may try to divide up your estate evenly and fairly, things may not go where you want them to. Suppose you want your estate to be donated to charity, that may not happen if you do not put down an estate plan with that detail written in there.
Another reason that having an estate plan is a good idea is because it enables the estate to be divided fairly, or at least according to the individual, and more importantly, it is divided legally. Without the plan, family quarrels are a large possibility since some people may feel like they got an unfair amount from the estate and that the estate executor, who is appointed by the individual to manage the division of the estate, has treated others unfairly. This scenario reeks of lawsuits and family feuds. Avoid this catastrophe with an estate plan.
No estate plan also means the possibility of probate, should the division of the estate not go smoothly. Having to go through the process of probate halts the process of dividing the estate and means heavy costs that can be hard to manage.
Even if you do not want to do an extensive estate plan and you do not have a family compound like the Kennedys, you can and should still do something. You should tell your family where you keep your private and confidential documents for things like accounts, policies, etc. You should write a will and letter of instructions. Designate a power of attorney/ executor of the estate. Lastly, make sure all your information such as accounts, names, passwords, etc. are all up-to-date.
Having a way to ensure your family's safety and comfort is not something you should take lightly and estate planning does not have to be a painful, stressful, or long process.
Source...