Despite what you might think, estate planning is not just for rich people who have a significant number of assets. Where you have possessions, you have an estate and you should be thinking about what you want to happen to it after you pass away.
The estate planning process becomes much easier with increased knowledge. Outlined below are a few things to keep in mind
What is estate planning?
While it may sound like a complicated process, it’s really quite simple. The main aspect of estate planning is the process of getting down in writing what you want to happen to your belongings after you pass away. It usually involves administrative procedures such as drafting a will and power of attorney.
Why do you need to plan your estate?
One of the main reasons people go through the estate planning process is to ease the burden on their loved ones when they pass away. It makes sure your intentions are honored and that your treasured possessions go to whoever you want without issue. This can also reduce the risk of family rifts or disagreements caused by family members arguing over what to do with your belongings.
. A Will addresses distribution of your property at your death. Life can be unpredictable and illness or injury may affect your health and capacity to look after yourself. A Power of Attorney gives someone authority to handle you financial matters during your lifetime if you are not able to do so. Having a power of attorney in place makes good sense; once you need it the only alternative is getting a court appointed guardian to handle financial matters.
Your will can also make sure that any young children you have are looked after in a way you approve of by appointing legal guardians.
It’s never too early to think about planning your estate. Find out the right steps to take for your personal situation and make sure your family knows exactly what your wishes are.