What You Need to Know About Estate Plans
You might think of estate planning as only something that wealthy people need to worry about. That couldn’t be farther from the truth. Everyone should have an estate plan. Why? Below we’ve answered some of the most common questions about estate planning.
What is an Estate Plan?
An estate plan is a set of documents that dictate what happens to your assets should you become incapacitated or die. It helps protect your loved ones from having to make difficult decisions.
How is an Estate Plan Different From a Will?
An estate plan is different from a will in that a will is just one part of an estate plan. While a will allocates assets to loved ones in the event of your death and provides a vehicle where you can name guardians for minor children, an estate plan generally includes other documents — among them a durable power of attorney for finances, a medical directive, a living will, trust information (if you have trusts), details on handling legal fees and more.
Do I Need an Estate Plan?
Yes, you should have an estate plan. An estate plan will help your beneficiaries and go a long way toward avoiding a potentially messy family situation.
How Do I Get an Estate Plan?
You can create an estate plan with the help of a lawyer. An estate plan contains many legal documents that only a professional can help you with.
Do One Thing: Contact a lawyer about creating an estate plan right away. It might seem unpleasant to think about what might happen when you’re gone, but this plan will help your loved ones immensely.
© SavvyMoney, Chris O’Shea