Estate plans are no longer considered something only people with considerable or complex assets need or something only elderly people should have. Any adult in any stage of life, regardless of income and assets, can benefit from having at least a few estate planning documents.
Let’s look at a few documents and other things that everyone should be aware of.
1. Everyone should have a will
If someone dies without a will, they’d died “intestate.” When that happens, state law determines who gets a person’s assets. Intestate laws are based on familial relationships – which may not reflect actual relationships.
Further, intestate laws can’t address just what asset each family member gets. Therefore, if you want specific items to go to particular people or non-profits, that can’t be ensured without a will.
2. The importance of an advance health care directive and proxy
Some important estate planning documents protect your wishes while you’re still alive. In an advance health care directive, you can detail your wishes for care or end of care should you become seriously ill or injured and unable to communicate. This can save your family from having to make excruciating decisions.
With an advance directive, it’s best to name a health care proxy and give them durable power of attorney (POA) to communicate with your medical team and advocate for the wishes you’ve codified in your directive. This can save a lot of family in-fighting at a difficult time.
3. A durable POA for finances
By giving someone durable POA for finances should you become incapacitated, you can help ensure that bills are paid, money is moved (if necessary) to pay for your care and whatever financial decisions or actions you authorize will be taken if you’re not able to do so.
Note that the right people need to have access to or know where to find these and other estate planning documents. Don’t just put them in a safe or on your computer where no one can find them.
4. Why individualized estate planning guidance can make a big difference
While online estate planning sites are popular, they can’t take the place of professional estate planning guidance. While you might save money in the short run with a DIY approach, it could end up costing far more in the long run. Having someone who can get to know your needs and concerns and be there to advise you as they change can give you peace of mind for yourself and your family.