What Everyone Needs as Part of Their Estate Plan
Nobody wants to consider the reasons for making an estate plan, but if you have a family, savings, material goods, or a home, you need one—even while you are young and healthy. If Americans have learned anything during the pandemic, it is that being healthy now does not always guarantee continuing that way forever. While you expect to be well for a long time to come, it’s important to have things in place to protect your family, business, and assets in the future.
A Will
Having a will saves your grieving family so much time and effort after your passing. They know both what assets you have and where they are supposed to be distributed. Likewise, you are free to leave special bequests of things like cars, homes, and other possessions to individuals. Having a will can prevent additional death taxes and probate work to find your heirs as well. It helps you be as careful in death of where your money goes as you have been in life.
Life Insurance
Having young children means your life insurance needs are greater than the average person. A website like Policygenius can help you determine how much insurance you might need. This will factor in things like your health and the amount of debt you carry. For instance, if you carry educational debt, those student loans don’t leave with you when you die. You do not want to saddle another generation (or a previous one, if your parents cosigned your loans) to additional debt. Life insurance can help make sure those things are paid off and do not cause additional trauma to a grieving family.
Power of Attorney
When it comes to granting power of attorney to another person, this extremely complex situation is best discussed with a financial planner. You are choosing someone who will literally have the power over your assets and, in some cases, your life, in their hands, especially in instances of dementia and Alzheimer’s progression. Obviously, you need somebody trustworthy with your best interests in mind, so getting a professional’s help choosing the right person is a smart decision.
Your family needs to know what you want to happen should you die or become incapable of handling your affairs. Protect your business, family, and life’s work by having a will. Talk to your lawyer and financial planner to see what else is needed in your estate plan.
Read this next: Advocating For Yourself: Why It’s Important
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