Estate Planning Basics

An estate plan is not just for the wealthy: Many people mistakenly believe that estate planning is only necessary if they have a large estate. However, everyone should have an estate plan, regardless of their wealth.

However, it’s never too early to create an estate plan: Many people put off estate planning because they believe they are too young to worry about it. However, accidents can happen at any age, and it's important to have a plan in place to protect yourself and your loved ones.

While a will is an essential part of an estate plan, there are other documents you should consider, such as a power of attorney, a living will, and a trust.  These documents can help plan for incapacity and identify other wishes a person has when they pass on their assets to their loved ones.

Your estate plan should be reviewed regularly: Your estate plan is not a one-and-done document. It should be reviewed and updated regularly to ensure that it reflects your current wishes and circumstances.

Without an estate plan, the state will decide how your assets are distributed: If you do not have an estate plan in place, the state will decide how your assets are distributed. This can result in unintended consequences, such as leaving assets to estranged family members or giving your assets to the government instead of your loved ones.

Therefore, it’s important for every adult to have an estate plan to ensure they are protected, and the state does not end up being the one to make their final decisions.