For many, the idea of creating an estate plan is something theyll do later. As in when theyre older, when they have more stuff or whenever they have some time to actually sit down and do it.
But putting off creating your estate plan isnt a good idea, and Ill tell you why.
Funerals can cost a pretty penny these days so even college students who live at home and have very few assets should at least have a life insurance policy to cover funeral expenses. If you own a car or a baseball card collection or a diamond ring and everyone owns something, someone will have to inherit that property.
And if youve got ideas about who youd want your belongings to go to, you need a Will to ensure your wishes are honored.
As you get older and start accumulating assets, youre effectively creating an estate that will have to be distributed. Even the most modest estates will have to be probated and if your assets cant cover your taxes and outstanding debts, your family may end up inheriting nothing at all.
Do you have a family? Ensuring that your loved ones are protected and provided for is a key component of a good estate plan. Your plan can set aside money for debts and ensure that your kids can go to college or that your spouse can pay off the family home. Without a plan, your family may be left with a mountain of debt and no real resources to pay it off.
Do you have family heirlooms that youve promised to a specific someone? A Will or Trust would ensure those heirs receive that property but without a valid plan, the state has the honor of deciding who gets what and that may or may not be in line with your wishes.
Of course, these are just a few of the reasons you need an estate plan and exactly which documents youll need will depend upon your individual goals. The best way to ensure that your assets and loved ones are fully protected is to consult with a professional estate planning attorney.
About the Author:
Geoff Garrett is the Owner & Attorney at Law at Byrd Garrett PLLC in Seattle, WA. For more information on estate plan and other estate planning services, visit our website.
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