Without an estate plan, your assets go through probate and your medical wishes may be ignored. You need a will or living trust, a living will, and a medical power of attorney. If you have minor children, name a trust as beneficiary so they don't inherit money too young.
While we all want to take the right steps to ensure that loved ones are cared for in our absence, the perception that estate planning is complicated is a primary reason people put off planning. But planning is actually the easy part. It's a lack of planning that creates complexity, anxiety, and potential chaos for those left behind. That's because estate planning is really about the living—ensuring that the physical, financial, and lifestyle needs of loved ones are protected when you're no longer there to provide for them. Planning begins with a few basic documents that can be drawn up by an attorney. They include a will or living trust declaring how your assets and the guardianship of any minor children should be treated following your death. Following your death; a personal property disposal list that indicates how real property should be distributed; a living will allowing you to make your medical treatment preferences known while you are still of sound mind and body; and a medical power of attorney to ensure that family members have the final say in decisions impacting your treatment and care. Finally, Beneficiary designations for all financial accounts and insurance policies should be updated. This is particularly important if you have minor children. By designating a trust as the beneficiary of your estate, you can avoid a situation where children automatically inherit assets at age 18. Contact your financial advisor today and put a plan in place to protect yourself and your family for the future.
