Far too often people, especially young adults, dismiss the idea of estate planning because: a) they don’t believe estate planning is applicable and/or beneficial to them; b) they think the expense outweighs the benefits, or c) they find it morbid and unnecessary at this point in their lives.
Estate planning started a tool that was only utilized by the extremely wealthy, however estate planning has become an important tool for adults ranging in all ages and financial circumstances. Life insurance, a will, a living will, and a durable power of attorney are all important aspects of an estate plan.
Here are 5 reasons why an estate plan would be beneficial to you:
1. Avoids a Mess
Estate planning provides you and your loved ones with a plan of how to distribute your assets after death. With this plan comes the ability to decide who gets your assets, and when and how they receive them.
2. Creates Future Healthcare and Financial Decisions
Estate planning maintains your power to choose who will make decisions regarding your healthcare and financial decisions should you ever become incapacitated. This allows you to make difficult medical decisions now and spares your loved ones the pain of having to make them on their own. Without a plan, the courts will select the person to manage these affairs for you.
3. Ensures You Have a Valid Estate Plan
In California, there are specific requirements in order to create a valid estate plan. People risk creating an invalid estate plan when they choose to forego an estate planning attorney and draft their own. This not only wastes time and money, but could create costly legal issues for your intended beneficiaries later on. It is a far better use of time and money to hire legal counsel to create a valid estate plan.
4. Avoids Probate Court
An estate plan allows your loved ones to avoid the expensive, lengthy and emotionally draining probate court process. Without an estate plan, your assets become a matter of public record, which the court could freeze until it appoints a person to handle your affairs. Should a family member wish to become your estate’s representative, they will be required to inventory all your belongings, close all your accounts, pay your bills, and distribute all your property according to state law, absent any assistance from you.
5. Provides Financial Security for Your Family
Estate planning protects, preserves, and passes your estate along to your beneficiaries. Life insurance, an essential estate planning tool, provides for your family in the event of an unexpected death or incapacitation.
Regardless of your age or financial status, it is never too early to start your estate plan. Without one, loved ones you intended to be beneficiaries of your estate may inherit nothing, unless they are willing to deal with the legal mess of probate court. That said, the sooner you create an estate plan, the sooner you will gain peace of mind in knowing all your financial affairs are in order should the unfortunate event of death or incapacitation occur.
Contact Kehr Law to schedule a consultation with an experienced attorney regarding what steps you can take towards creating your own estate plan today.
