Estate planning is something that can leave people with more questions than answers. Many people know that wealthy people have an estate plan for their estate, but they do not realize they anyone can benefit from an estate plan.
Misinformation surrounding estate planning may be why only one in three adults have an estate plan. There are many ways that you can benefit from an estate plan, which you can even begin developing today. There are a lot of things that you can include in your estate plan, such as:
Wills
A will is a popular inclusion in an estate plan. This legal document defines your wishes about how you want your estate to disperse and who you want to inherit these assets. Without this document, your estate will go into the government’s judgment, and they will decide who receives what, which may go against your last wishes.
Trusts
A trust is another method of passing on assets to a loved one. However, this option allows the testator (the person who creates the legal document) options in reducing estate taxes to help benefit their inheritors.
Guardianships
If you have young children or are responsible for a vulnerable adult, establishing a guardianship can give you the peace of mind you need by knowing that someone will look after your loved ones if you cannot.
Health care directives
An estate plan can also benefit you while you are alive. If injury or illness makes you unable to act on your behalf, your loved ones can use your health care directive to determine your medical wishes. You can specify your desires regarding matters like how long you want to remain on life support, what medications you consent to, and whether you consent to amputation or not.
Begin planning today
Everyone can benefit from an estate plan, regardless of their age or income level. Now is always the best time to start an estate plan because there is no telling what tomorrow may bring. Talk to an estate planning attorney today to see what you can do to protect your future.