While no one likes to think about a time when they’re no longer around, we all secretly wonder the same things: Will my spouse have enough to live on when I’m not there? Will I be able to leave a legacy for my children? Will the family home stay in the family, or will it have to be sold to pay off creditors and taxes?
This is why you need an estate plan.
Estate planning is simply a way to protect your assets and your loved ones by creating legally valid documents that address a variety of concerns.
Do you have a child that has special needs? Then a special needs trust might be the solution for you. This type of trust allows you to provide for a disabled or incapacitated dependent without affecting their eligibility for government-assistance programs.
This trust can also be a component of a larger family trust, often called a Living Trust, that shields your assets from probate, minimizes taxes and even provides a way to give your heirs incentives for going to college, getting a job and similar personal growth accomplishments.
A good estate plan will also include Powers of Attorney – documents designed to designate someone to step in and speak on your behalf in financial and medical matters. In addition, you should have Advance Directives (a living will and health care power of attorney) that tells your healthcare providers how to handle life support and resuscitation matters.
In a nutshell, your estate plan is something you really can’t do without.
- Myths We Tell Ourselves About Estate Planning - October 13, 2020
- Living Trusts Streamline the Estate Administration Process - June 8, 2020
- Estate Planning: Cover These Bases - May 20, 2020
