Why Estate Planning Matters
Estate planning matters because the better prepared you are, the less stressful things will be on you and your family when it matters most.
Planning produces peace of mind.
Planning for your future is one of the best ways to prepare and protect yourself, your family and your finances. Estate planning allows you to strategically plan what will happen with all of the things that you own after you die and protect you during your lifetime. The process can seem overwhelming but it doesn’t have to be!
What estate planning is not: estate planning isn’t about hiding assets or anything negative. Estate planning matters since it is simply the best way to protect you and your family during your lifetime and beyond by making a plan in advance so that if something happens it will be as easy as possible for those closest to you when designing an estate plan. Estate Planning is just one of many important things families should consider when putting together their estate documents such as creating durable powers of attorney, healthcare directives (also known as living wills) and writing down what they would like done with all of their stuff after death.
Estate planning covers everything from how personal effects are distributed upon death to more complicated matters involving business interests held by the deceased, protection against creditors’ claims and the establishment of trusts for minors or disabled beneficiaries.
Something that many people don’t know about estate planning is how critical it can be during incapacity. If you become incapacitated without an estate plan in place, your loved ones may have to go through something called guardianship in order to access your assets and estate. Having estate planning in place can spare them the stress of having to do this, and it will ensure that your estate is distributed according to what you intended when creating an estate plan – not how much money someone happens to have or who has connections with a judge.
A durable power of attorney is a legal document that gives someone you trust the authority to make decisions on your behalf. A healthcare power of attorney is a document that lets someone else make medical decisions for you if you can’t speak for yourself. An estate planning estate plan includes durable powers of attorneys and healthcare powers of attorney, as well as an advance directive. You should consider adding these documents to your estate plan so they’re ready just in case the unexpected happens: unexpected accidents, sudden illness or incapacitation- there’s no time like now!
Many married couples assume that they have a power of attorney for their spouse because they are married. This isn’t true. Without a durable power of attorney, you are powerless to sign for your spouse of carry out business for them!
A living will is a document that outlines that when something happens, it can happen the way YOU want! Living wills are also known as advance healthcare directives and are estate planning estate documents. A living will is a legal document that outlines what kind of medical treatment you would want in the event of an emergency. It doesn’t take effect until your death or incapacitation, which means it’s up to your loved ones to decide on how to carry out the terms outlined in the document. If someone else decides for you, they may not know what type of care you wanted or be able to make decisions for you with respect to all aspects of life – from health care treatments, financial affairs and end-of-life arrangements.
The best time for people over 18-years old to put together an estate plan is today because if they don’t get around to doing so before losing capacity then there’s no guarantee that their wishes will be carried out. Estate plans should include all pertinent information about beneficiaries, guardianship arrangements (in case something happens during incapacity), distribution details (how personal effects are shared after death), powers of attorney (if necessary) and healthcare directives where possible; however estate planners recommend reviewing estate documents every three to five years, or whenever there are significant changes in your life.
Planning your estate should be a collaborative process between you and an estate planner. Although estate planning may seem complicated, it doesn’t have to be! Estate planners are trained professionals who can help determine what estate documents are necessary for their client’s specific situation – then they put everything together into one comprehensive package that minimizes taxes or unnecessary costs while ensuring assets get distributed according to the wishes of the deceased.
Estate planning is all about protecting you and your family during your lifetime and beyond so if something happens don’t stress because having estate documents in place will make things easier on everyone involved when trying to carry out your final requests.
The estate planning process usually begins with a meeting between an estate planner and their client, in which all relevant personal information is obtained including estate size, family composition and any potential issues that need to be taken into consideration while devising the plan. From there, the estate planner will work with their clients to put together a comprehensive estate plan that covers all bases – it’s never too late (or early) to start!
Everyone should consider estate planning an important step in the process of building their estate because estate planning matters.