I often find that young parents do not fully understand why they need to think about an estate plan. They are usually in good health, of modest means, and focused on taking care of their children – they do not have time to add one more thing to their to do list! Here are five reasons why you (yes, you) need to think about estate planning.
1. Estate planning is not just for the sick.
Estate planning is not just for the elderly or sick. In fact, by the time you are sick, it may be too late to put a proper estate plan in place. By putting your estate plan in place while you are healthy (and ensuring you revise it as life changes happen!), you are helping to guarantee that when you are sick, you and your family will be taken care of as you wish.
A properly drafted estate plan contains a durable power of attorney and healthcare surrogate designation, two important documents that allow a trusted third-party to make financial and/or healthcare decisions on your behalf. An estate plan can also include a living will, which indicates when you wish to receive or refuse food and water when sick.
2. Estate planning is not just for the wealthy.
An estate plan is simply a set of documents that outlines the assets and other personal property you own and directs how you wish for the property and assets to be passed on after your death. No one likes thinking about their own death, but if you have any assets or property that you have worked hard to earn during your lifetime, you want to make sure it is passed down the way you see fit.
Most estate plans include a will and some also include a trust. While a trust is often a larger up front investment, it can save lots of money in the long run. Whether you and your assets need a will-based plan or trust-based plan is something you and your attorney should discuss.
3. Estate planning is important if you have minor children.
If you have minor children, it is imperative that you have an estate plan. In your estate plan, you will be able to indicate who you wish to take care of your children in the event you and their other parent die suddenly. Without such an indication in your estate plan, a judge who has never met you, your family, or any of the people vying to be guardian of your children will be responsible for making that decision. Do not leave it up to chance!
4. You never know when you may get sick or injured.
If the year 2020 taught us anything, it is that life is precious and unpredictable. While no one wakes up in the morning expecting to get injured in a car accident or an on-the-job injury, it does happen. By getting your estate plan together today, you can rest easy knowing that if that happens to you, you and your family are taken care of as you outlined in your estate plan.
5. You need to help protect your family.
I cannot overstate this enough. When drafted properly, an estate plan can protect your family in the event of your incapacity or death. It appoints someone to act as your healthcare surrogate, your durable power of attorney, and directs how you want your assets to be passed down. Perhaps most important for those with minor children, it also states who you wish to be their guardian in the absence of you and their other parent.
If you are in Florida and need to get started on your estate plan, contact us today. We also offer an online service to make getting started as easy (and affordable!) as possible.