Estate planning may sound like something only very wealthy individuals do to prepare their long list of assets for when they pass away. This is, however, not necessarily the case as a good estate plan can be beneficial for:
Particularly, because unexpected events happen… unexpectedly, it’s always better to be prepared for the worst to ensure your family is financially protected. A solid estate plan can do just that, even in the event something happens to you causing you to become incapacitated or unable to make sound decisions. Incorporating a trust into your plan can perform this function.
The probate process can be lengthy, expensive, and your assets may not be distributed the way you intend. On top of that, divorcing spouses and creditors can show up unexpectedly to cause trouble, and the who proceedings end up in the public record. For many individuals, this whole experience is something they want to avoid, especially for the sake of the family and protecting your assets and privacy. Setting up trusts in your estate plan will solve this problem.
Protect Your Health
In the case something happens to your health, your estate plan can include instructions on how your family should handle the situation. You can name a healthcare proxy or power of attorney and create a living will. You may also want to sign a HIPAA release form to allow individuals that you authorize to obtain and use your healthcare data for your benefit.
Distribute Your Assets
The biggest reason perhaps to create an estate plan is so your assets are distributed the way you want, and with as little hassle or money lost as possible. A will can be created to provide your guardian choice for any minor children, and a trust can provide numerous protections, including tax savings.
This whole process can be a great learning opportunity if you have children. As they grow up you can teach them how you are setting everything up, share your wealth goals, and when they get older, help them understand wealth sustaining strategies to preserve your growing family legacy.
Setting Up Your Estate Plan
To get your estate plan underway and choose the right accounts and methods for which to protect both your own health care in the case of the unexpected, as well as your family’s financial future, consult an experienced estate planning lawyer in King of Prussia, PA. They will be able to assess your situation and help you choose the best strategies for your unique estate.
Thanks to Klenk Law for their insight into estate law and why you need an estate plan.