It is a common misconception that only wealthy individuals need to worry about an estate plan. Quite the opposite is true- everyone needs to think about estate planning: young or old, rich or poor.
When you think of estate planning, you probably think about planning how your assets will be handled when you are very old. Or perhaps, if you are younger, you think about estate planning as a way to minimize tax liability.
While these are important aspects of estate planning, the most important element is making sure that you are prepared in the event of an unexpected illness or injury that drastically changes your life.
Estate planning includes:
- A plan for the disposition of your assets
- Instructions regarding your care
- Instructions regarding the care of minor children
- Designates a person to handle your finances
- Determines if a court, or another individual, should review that person’s management of your finances
- Ensures you have proper funds available should you need professional, long-term care
Estate planning should be a process that begins now. Over the years, your estate plan can grow and evolve with you and your family, but it is much better to have the piece of mind that your estate will be handled as you wish than to leave it to fate.
