Estate Planning 101 – Why It’s Important for Everyone, Not Just the Wealthy
When we’re discussing estate planning with our clients, we’ve learned that most people think of estate planning as mostly being for the uber wealthy—those with vast assets, multiple properties, and considerable investments. However, the reality is that estate planning is essential for everyone, regardless of the size of your estate.
What is Estate Planning?
Estate planning involves the preparation of documents and account organization that will serve to ensure that an individual or couple’s financial and familial affairs will not be thrown into chaos in the event of their incapacitation or death. We advise clients every day about organization of accounts, appointment of agents and trusted family members in critical roles, and work to ensure that loved ones will be provided for. Common documents we discuss are Wills, Powers of Attorney, Advance Medical Directives, Guardianship Appointments, Trusts, and more.
Why You Need an Estate Plan
Protecting Your Loved Ones: Estate planning is not just about what happens after you pass away. It's also about ensuring that your family and finances are taken care of if you become incapacitated. Powers of attorney and health care directives can appoint trusted individuals to make financial and medical decisions on your behalf.
Avoiding Probate: Without careful planning, assets will have to flow through probate before your family members can access the assets. Probate is a legal process that can be time-consuming and costly. Probate proceedings are public, which means anyone can access the details of your estate. Proper estate planning can help you avoid probate or streamline the process, keeping your affairs private and reducing the burden on your loved ones.
Ensuring Your Wishes Are Followed: Without an estate plan, the distribution of your assets will be determined by state law, which may not align with your wishes. A comprehensive estate plan allows you to specify exactly how you want your assets distributed, ensuring that your loved ones are cared for according to your desires.
Planning for Incapacity: Life is unpredictable. Accidents or illnesses can leave you unable to make decisions for yourself. An estate plan includes documents like a durable power of attorney and a health care directive, which designate trusted individuals to make financial and medical decisions on your behalf.
Providing for Minor Children: If you have minor children, an estate plan is crucial for appointing guardianship. Without a guardianship appointment the court will decide who takes care of your children, which may not align with your wishes.
Common Misconceptions About Estate Planning
"I’m too young to need an estate plan.": Estate planning is not just for older individuals. Accidents and illnesses can happen at any age, and having a plan in place ensures that your wishes are known and followed.
"I don't have enough assets to need an estate plan.": Regardless of the size of your estate, having a plan helps protect your loved ones from unnecessary legal hurdles and ensures your assets are distributed according to your wishes.
"Estate planning is too complicated and expensive.": While it can be complex, working with experienced estate planning attorneys can simplify the process. The cost of creating an estate plan is often much less than the cost and hassle your loved ones may face without one.
At Wakefield Law, we specialize in creating customized estate plans tailored to meet the unique needs of each client. We offer flat fee packages for estate plans, which means all communication and meetings are included in the price – we take as much time as is necessary to make sure we understand your goals, educate you about how to wield the documents we are drafting, and work with the whole family and trusted professionals to make sure everything is accounted for.
Feel free to reach out to us with any questions or to schedule an appointment. Our team is here to help you navigate the complexities of estate planning with confidence and clarity. 7037719740