Estate Planning Is for Everyone: Protect Yourself and Your Family

Many people think estate planning is only for the wealthy. That is not the case. You and your family can benefit from planning ahead, regardless of how much money or property you own.

Without an estate plan, your family may face difficult decisions if you become incapacitated or die unexpectedly. Your financial obligations do not stop if you cannot work. Rent, car payments, household expenses and other bills still need to be paid.

Planning ahead can help you prepare for these situations. It can also give you more control over what happens to you, your family and your belongings.

Powers of Attorney

If you are involved in a serious accident and become unable to make decisions, who will make them for you? Many people do not think about this until it is too late.

A medical power of attorney, healthcare power of attorney or similar document may allow you to name someone you trust to make healthcare decisions for you. This applies if you cannot make those decisions yourself. The name and requirements for these documents vary by state.

An estate planning attorney can explain the options available in your state. They can also help you document your healthcare wishes. An advance directive or living will may allow you to provide instructions about certain types of medical or end-of-life care.

Financial Power of Attorney

You should also consider who will manage your finances if you become unable to do so.

A financial power of attorney allows you to appoint someone you trust to handle financial matters and property on your behalf. This can be useful for anyone. It can be especially helpful if you travel often or want someone ready to manage your finances during an emergency.

Depending on the document and your state’s laws, your agent may be able to pay bills, manage property and handle other financial responsibilities for you.

Choosing a Guardian for Minor Children

If you have minor children, think about who you would want to care for them if you become unable to do so.

This can be difficult to consider. However, making your wishes known can give your children and family greater certainty during a difficult time.

In many states, parents can nominate a preferred guardian in their estate planning documents. The court will ultimately make the guardianship decision under applicable law.

Without clear instructions, your family may have to go through a court process to determine who will care for your children.

Talking with the people you trust and documenting your wishes can help your family understand what you want if the unexpected happens.

Planning for Precious Keepsakes

Estate planning is not just about money and real estate. You can also use a will or trust to explain who should receive your personal belongings.

Some belongings have little financial value but mean a great deal to your family. Family photographs, jewellery, military medals and other keepsakes can carry memories that cannot be measured in dollars.

Without a plan, your loved ones may have to decide how these items should be divided. This can lead to disagreements at an already difficult time.

Depending on your state’s laws, a personal property memorandum may allow you to identify specific belongings and the people you want to receive them.

Personal property memoranda can also provide some flexibility. In states that recognise these documents, you may be able to update the memorandum without changing your entire will or trust.

The rules vary by state. Before relying on a personal property memorandum, make sure it meets the requirements that apply to your estate plan.

What Can an Estate Plan Protect?

You do not need significant wealth to have estate planning needs. Depending on your circumstances, an estate plan may help you:

• Choose someone to make financial decisions for you if you become incapacitated.
• Communicate your healthcare wishes in advance.
• Nominate a preferred guardian for your minor children.
• Decide who should receive your property after your death.
• Explain who should receive important family keepsakes.
• Give your loved ones clear instructions about your wishes.

The documents you need will depend on your circumstances and your state’s laws. An attorney can help you understand which documents may be appropriate for you.

Estate Planning Can Benefit Everyone

You may not think you need an estate plan because you do not have significant assets. However, estate planning is about more than deciding who receives your money after you die.

It can also help you prepare for incapacity, choose people you trust to make important decisions, plan for your children and protect the belongings that matter most to you.

Regardless of your income or net worth, having a plan can give you and your family greater certainty about the future.

Get Help With Your Estate Plan

If you have questions about powers of attorney, advance directives, guardianship, wills, trusts or other estate planning documents, contact us to learn about your options under applicable law.

A properly prepared estate plan can help you prepare for unexpected situations and protect the people and things that matter most to you.

Learn more about estate planning and how to get started.