ESTATE PLANNING BASICS
What Is An Estate Plan and Why Do You Need It?
There are a lot of misconceptions about Estate Planning. Many people think that you have to have a large value of assets or a lot of land to benefit from estate planning. And many people think that they only need a simple will because they don’t have enough assets. But the truth is, most people would benefit from having an Estate Plan.
Why? Some of the main concerns people have about the assets and loved ones you leave behind are who will make sure all of your belongings, property, and other assets are divided up as you wish, who will care for minor children, and who will take care of you if you are incapable of making your own decisions. If these things, among others, aren’t addressed before you pass on, it can create a headache for your loved ones, during an already stressful time in their lives.
The Will is generally the cornerstone document of your Estate Plan. That is where you will answer the questions below and designate the people you want to handle your affairs and direct them as to how things should be handled after your passing.
Things that your will can accomplish:
Executor - who will manage your estate
Guardian - who will take care of your children
Specific Gifts - do you want to leave specific items to specific individuals
Do You Need a Trust?
If you have children, you have probably thought about a will. Or maybe you even have one to choose the guardian for them. However, have you thought about what happens to the assets they stand to inherit after you're gone? In some cases, the assets you leave them aren’t as protected as you think.