Estate planning might sound like something you don’t need until you’re older or have more wealth. But regardless of age, net worth, or family situation, even a simple estate plan can help ensure your wishes are carried out. Not having one can cause money, possessions, and even decisions about guardians for minor children to be tied up in court, while legal costs pile up. Learn what estate planning is, why it’s important, key documents, and how to choose an estate planning attorney.
What is estate planning?
Estate planning is the process of determining how you want your assets handled when you can no longer make financial decisions, due to death or incapacity. An estate plan also allows you to put medical requests in writing, to reduce the burden on loved ones if you become ill or hospitalized. It may also help minimize taxes on the assets you leave to loved ones, so more of your legacy is preserved for them.
Estate planning can be relatively simple or complex. Depending on your needs and goals, it may involve creating wills, trusts, and advance health care directives, purchasing life insurance, naming guardians for minor children or heirs with disabilities, and titling assets or designating beneficiaries to ensure property passes to the people you choose.