5 BIG Reasons to Plan for the Unexpected
I am guilty. Guilty of expecting that nothing bad will happen to me and I will live to be almost 100, like my Great-Grandma did. However, when you know better you do better. That includes Estate Planning 101. You are honestly not doing this for you. This is a completely selfless, time-consuming, but absolutely necessary part of life that will preserve everything that you will accomplish while you are here.
~I am not an attorney. this advice comes from just one attorney that I work with, but please be sure to consult your family attorney about what is right for your particular situation
First Things First
Keep your wealth in your family. Even if it’s minimal, why should the government, attorneys and CPA’s get it all? Shouldn’t your assets stay with those you love?
Second
A will alone is not enough to keep you out of Probate. You can spare your family from ever having to deal with probate court and the restraints caused by it. All you need to prepare is a revocable living trust. This will specify what assets go where or to whom. It can also be combined with a “pour-over-will” if you are a business owner and/or you purchase assets on a regular basis. This easily transfers ownership of any business to the appropriate person or entity.
Third
If you plan to establish a philanthropic legacy, there are tools that can help you make donations. This will ensure that you are remembered for your monetary support of causes that are dear to you.
Fourth
If you are reading this, you are most likely a parent. Trusts are a critical part of your estate plan. It protects your assets for your heirs. If it goes through probate court, this protection does not exist.
Fifth
OK, so this one is for you. It is important to consider what you want to happen in the case that you are incapable of making decisions before you pass away. This includes having a Medical Power of Attorney, Durable Power of Attorney and a Living Will. These decisions if made after-the-fact, will tear families apart. You do not want to put the undue stress on your loved ones.
Remember this is NOT FOR YOU…
You selflessly need an estate plan that allows you to prepare for the inevitable, provide for your loved ones, and direct your assets (no matter the volume) exactly where you want them to go.
The ideal time to make an estate plan was yesterday. At a bare minimum, get started with your revocable living trust and get your power of attorney’s set up. This is a great start! If you buy an asset AFTER this is prepared, make sure to get your “pour-over-will” done at that time.
