You may think you are too young to plan for things such as death and disability. The reality is that we have no promise of tomorrow and the importance of planning for the unexpected can not be ignored. You should have an estate plan if you have property that you care about, you want to set specific plans for your health care treatment, and especially if you have a minor child or children. Create an estate plan now, while you are legally capable of creating one. If you wait until you are unable to manage these types of affairs, your plan could face the challenging of those who will fight against your wishes.
An estate plan coordinates the distribution and/or control of your assets. Assets include investments, real estate, life insurance policies, retirement plans, business interests and employee benefits. An estate plan also leaves specific directions regarding your wishes for healthcare and financial matters and guardianship of your minor children or disabled loved ones. The goal of all estate plans is to ensure that your directions are followed regarding the control of your assets and other decisions, and not left up to the courts. The third goal of an estate plan is to minimize potential taxes and fees and their affect on your estate.
The first step is to document the answers to the following questions:
- Who do you wish to receive your assets in the event of your death, and when should they receive them?
- Who should be in charge of your financial matters?
- If you are unable to do so, who should make medical decisions for you?
- If you are unable to do so, who should care for your minor children or disabled loved ones?
Next, make an inventory of your assets so that none are overlooked.
Then select a professional to prepare the documents to ensure all applicable laws are followed to the letter. Choose someone who is experienced in the field of estate planning.
Next to last, ensure all of the legal documents are prepared, such as a will, a revocable living trust, a charitable remainder trust, etc. Do your research on the various types of documents and then decide what will be best for you.
Finally, be sure to follow through with title or beneficiary changes so that your plan is complete.
