I am often asked by clients, “Do I really need an estate plan?” The short answer for anyone older than 18 is yes! However, the scope and complexity of your estate plan will vary greatly depending on your circumstances. Those with significant assets, who are married or have children, who have their own businesses or who have serious health concerns, absolutely should consider working with an attorney to develop a comprehensive estate plan. Young, healthy individuals with relatively few assets (no real estate), little debt and no children should still consider a Durable Power of Attorney and Health Care Power of Attorney/Advance Directive. Estate planning can be a complex process, but you can make it easier with the support of a capable, experienced attorney.
Having a comprehensive estate plan in place will help you feel more organized and confident about the future. Some of the objectives of estate planning include:
· Providing support and financial stability for your spouse.
· Preserving assets for your children or grandchildren.
· Supporting a favorite charity or cause.
· Ensuring all of your assets, including those that pass by beneficiary designation (e.g., retirement accounts and life insurance policies), will be distributed according to your wishes.
· Minimizing taxes and expenses.
· Ensuring someone can make decisions for you in the event you become incapacitated.
An attorney can help you determine how to structure an estate plan to meet your goals. You will discuss how taxes might affect your plan and what kinds of documents you need. An attorney can also give you examples of some common estate plan designs so that you can choose the one that best meets your needs. Finally, your attorney will work with you throughout your life, so as your estate planning needs change, your estate plan can be adjusted accordingly.
Estate planning can feel daunting for many people, but don’t wait until you are ready to begin your plan. You may never feel ready, but the peace and sense of control, organization and accomplishment you will feel once a professional estate plan is in place is absolutely worth it.