Most people understand the importance of creating an estate plan to better ensure that their wishes are honored when they die. Therefore, it may be surprising that an estimated 67% of the adult United States population doesn’t have one in place.
Many people may believe they have plenty of time to create one, don’t have enough assets to pass on or don’t have any heirs. However, there are multiple reasons why all adults can benefit from creating an estate plan.
Preparing for the unexpected and inevitable alike
It may be a morbid thought, but everyone dies. And, the fact is that we don’t know when we may die. Furthermore, regardless of how young and healthy you may be, there is the chance of becoming incapacitated (say that you’re struck by a car and you need to be placed in a coma) and not being able to handle your financial affairs or express your wishes regarding medical treatment.
Even if you don’t have substantial assets, you likely have items with sentimental value that you want to pass on to specific people in your life. With an estate plan, you can be better assured that your personal belongings will end up in the right hands. Estate planning is also crucial if you have minor children, as it allows you to designate a guardian for them if something should happen to you. Without an estate plan, the court will decide who will care for your children, which isn’t an ideal situation.
By creating a will, advanced health directives and naming a power of attorney, you can better ensure that your wishes are carried out and remove the burden of decision-making from your loved ones during difficult times. You can even include a trust in your estate plan, which can help you avoid to probate, a legal process that can be time-consuming, costly and public record.
The most significant benefit of creating an estate plan is the peace of mind it can bring. Knowing that your affairs are in order, your loved ones will be taken care of and your wishes will be honored can alleviate worry and stress for you and your family.