Estate Plans are not just for people with “estates”. An estate plan is like a road map for making sure your wishes are carried out when you pass away or are unable to make decisions by yourself. 1 Every estate plan is different, but a few common documents that fall under the umbrella term include a Last Will and Testament (Will), Living Will, Trust, Medical Power of Attorney, Financial Power of Attorney, Life Insurance, and Beneficiary Forms. Most states do not recognize handwritten documents. So, consider talking with a lawyer to draw up formal, notarized documents.
The main purpose of creating an estate plan is to ensure the following:
Your assets are distributed the way you prefer
There is someone named who has the authority to make decisions on your behalf should you be unable
Your beneficiaries are clearly identified
If you die without a valid will, depending on state laws, the state may dictate who gets your assets and your loved ones could be tied up in drawn-out legal battles potentially resulting in hefty legal and tax bills. 2
Talk with us, as well as your qualified legal counsel, about how you would like your estate divided when you pass on. We are ideally positioned to help you think through what will be most feasible and fitting.
Sidenote: Drawing up the documents for an estate plan is not free. But whatever you spend will be more than worth it when your assets are passed on without undue delay or expense. Put a note on your calendar to talk with us in the first quarter of 2024.
1 https://www.nationwide.com/lc/resources/investing-and-retirement/articles/what-is-estate-planning
2 https://www.wsj.com/articles/dying-without-will-what-happens-6cc4674b
