What Estate Planning Really Is: An Essential Overview
Source: wealth.com
Estate planning isn’t as complex as it may seem and you don’t need a legal degree to create one. In short, estate planning is simply recording your wishes for what happens if you’re unable to manage your own affairs. This quick and comprehensive overview will give you a working understanding of the estate planning basics.
No one likes to think about death, especially their own. But think about this: What will happen to your stuff—money, family heirlooms, even a pet—if something happens to you? If you haven’t created a document that tells your loved ones who should get what, and who should sign off on those decisions and do all the paperwork, your loved ones will have to decide for (and potentially argue among) themselves. You can provide for your family’s needs, ensure your wishes are honored, and save your loved ones a lot of anguish during an already stressful time by creating an estate plan.
Although estate planning is essential for ensuring your money and property are distributed in exactly the way you want, only one-third of adults in the U.S. have a Will. That overall number has fallen steadily over the past five years, but the COVID-19 pandemic did inspire those ages 18 to 34 to write a Will—63% more people in that age group created a Will in 2021 than in 2020.
So why don’t more people do it? The five main reasons are:
- I just haven’t gotten around to it.
- I don’t have enough money saved.
- I don’t know how to begin.
- I don’t know anything about it.
- I don’t own anything valuable.
Unfortunately, these misconceptions are preventing people from putting even a basic plan in place. People perceive estate planning to be complicated, scary, or simply not relevant to them. The reality is, you don’t have to be a millionaire or own multiple homes to benefit from an estate plan.
You need an estate plan if:
- You worry that your pet(s) could be given to a shelter
- You want to make a final gift to a grandchild, niece, or nephew, or a friend or charity at your death
- You have specific wishes about your health care and end-of-life care
- You feel strongly about who should manage your affairs if you were unable to do so yourself
- You really want your children to end up with your assets, if there is anything left after your spouse passes away
- Some of your family members don’t get along and might disagree about who gets what or who should manage your affairs
- You do not want a certain family member to receive your assets, to make health care decisions for you, or to manage your affairs
- You own a significant amount of cryptocurrency
Do any of these sound like you? Because most everyone can benefit from the peace of mind an estate plan brings, we want to demystify the process so everyone—yes, even those without a law degree—can see that it’s simpler and more accessible than they think. And, hopefully, the information in this guide will equip you with enough information to quit putting off this important task.
Franklin Planning has partnered with Wealth.com to assist our clients build their estate plan. Please call our office to schedule a call with Carol to find out more.