Misconceptions make it difficult to know when to plan your estate. This causes some to put off estate planning for as long as they think they can. Misconceptions lead to mistakes.
Here’s another misperception about estate planning – thinking its sole purpose is to prepare for death, a destination many aren’t eager to consider. It causes many to incorrectly categorize estate planning as something best done closer to retirement.
Estate planning isn’t just for the wealthy. Those who think it is either wait to earn more or assume it’s not for them. Either way, they end up not taking care of something (or someone) that’s really important. Those who think like this need more financial education
You can be young and plan your estate. You can look forward to life and still do this. Estate planning plays an important role in organizing your finances. It can help you organize your life and give you and your loved ones more peace of mind. Estate planning is not just for the rich and old
Every parent should have an estate plan, especially those with minor children, as should every business owner. Also, the plan protects your privacy by helping to avoid probate court, where records are public information. If you have person or charity that you want to make sure is provided for, then plan your estate.
You’re Not Too Young to Plan Your Estate
If you have assets, then plan your estate. Assets for estate planning aren’t just real estate and high-ticket items. If you have not have an estate plan, the State of Tennessee has prepared one for you. This certainly can cause unnecessary emotional and financial hardship to the person’s loved ones and destroy all the person built
What assets should be included in your estate plan? In addition to any real estate, you should also consider your financial accounts, retirement accounts, and any asset that you would want a particular loved one to have. But know when you plan your estate that it also covers what will happen to you in the event that you become incapacitated.
Understand the difference between a complete estate plan versus a just will. An estate plan encompasses much more than a will. A will is a single element of an estate plan. Your will is the legal document that spells out your desires concerning the distribution of your property.
Your estate plan, however, covers:
- Distribution of property
- Advanced directive
- Trusts for your loved ones
- Trusts for your favorite charities
- Durable power of attorney
- Healthcare power of attorney
- Letter of intent
- Beneficiary forms
- Guardianship designations
When you plan your estate you take inventory, map out beneficiaries who will receive your estate, and appoint executors and trustees who will carry out your plan. This can give you keen insight on your financial standing and the moves you should make.
Any changes to your family is a great time to create or update your estate plan. This includes the birth or adoption of a child, marriage, and divorce. If you started a business, estate planning is the way to protect it with succession. It’s also a wise thing to do when you get lump sums such as lottery winnings, a settlement, or an inheritance.
If you know you should plan your estate but have been procrastinating about it, don’t wait any longer. Call Preston Wilson Law.