Estate planning can sound like something reserved for people with large fortunes, but it's really about something much simpler: making sure your wishes are known and the people you care about are looked after. Nearly every adult can benefit from a few basic steps.
A will is the foundation of most estate plans. It explains how you'd like your property distributed and, for parents of young children, names a guardian to care for them. Without a will, state law determines who receives your assets, which may not reflect your wishes.
Beneficiary designations matter
Some of your most valuable assets may not be controlled by your will at all. Retirement accounts, life insurance policies and some bank accounts pass directly to the beneficiaries you name on the account. That makes keeping those designations current especially important.
Life changes such as marriage, divorce, the birth of a child or the death of a loved one are all reasons to review your beneficiaries. An outdated form could send money to someone you no longer intend to receive it.
A durable power of attorney lets someone you trust manage your finances if you're unable to do so. A health care directive outlines your medical wishes and names someone to make health decisions on your behalf. Together, these documents help protect you during your lifetime, not just afterward.
Some families also use trusts to manage how and when assets are distributed, provide for loved ones with special needs or simplify the transfer process. Whether a trust makes sense depends on your circumstances, and an estate planning attorney can help you decide.
Start with the essentials
Begin with a will, current beneficiary designations, a power of attorney and a health care directive. Store your documents safely, tell key people where to find them and revisit your plan every few years.
Protect Invest Plan can help you organize your accounts, coverage and beneficiaries as part of a complete plan. Book a free planning review today.