Estate planning is not important; it’s necessary.  While it may be unpleasant to contemplate what happens after your death, it is better to maintain control of your estate, its distribution after your death and other important items such as healthcare decisions.  Don’t rely on state laws to make very personal decisions on your behalf.  Make a plan and maintain control.

Why the size of your estate doesn’t matter

Estate planning is not limited to the uber wealthy.  While the term estate planning may conjure images of the rich and famous, estate planning needs are for everyone.  If you have any amount of wealth and want to maintain control of how it is distributed, an estate plan is required.  The alternative is that the state will make all decisions for you.  Estate planning is how you maintain personal control over personal decisions.

For instance, not all state laws have caught up to this day and age’s blended families.  Between marriages and remarriages, things can get complicated.  Use estate planning to simplify who gets what.  If you don’t, state law will step in and your children or your second spouse’s children may not inherit the items or amount of estate you wanted. Decide how you want to distribute your estate, put those wishes in a legal document, and communicate them to your loved ones.

Estate planning is also important if you wish to exclude someone from inheriting.  The state does not care that you haven’t spoken to your nearest blood relative in 20 years.  If you have someone in your life that you would like excluded from inheriting you need to explicitly include that in your estate plan.  It’s important that this is documented and specific.

No matter how large or small your estate, it is always worth maintaining control of the assets you have worked hard to accumulate.  An estate planning attorney can explain your options and help you put your plan in place.

Estate planning is about much more than just money

When most people think of estate planning, along with the image of the rich and famous, they think about money.  Estate planning addresses other items that are equally, if not more, important.  Your estate plan should include important end of life decisions such as whether you want to be an organ donor.  You can also include your burial or cremation preferences and what sort of after death services you would like.  You should also leave a list of any arrangements you already have in place such as a purchased cemetery plot.  Giving your loved ones as much information as possible is the best way to help them follow your wishes, and allow them to deal with their grief instead of struggling to make these types of decisions.

Estate planning can also include creating a healthcare power of attorney or advance directive.  These documents detail how you want your healthcare handled and allow you to nominate a healthcare representative.  This portion of the plan can address items such as whether or not you want to be on life support and whether you believe in taking pain medications.  If you are ever severely injured or incapacitated it is important that you have these documents in order.  If you don’t have the proper paperwork in place, the state or treating physician will reach out to your spouse, an adult child, nearest blood relative and then closest friend. The person that is reached and chosen to make decisions on your behalf may not be the best person for the job.

Family disputes can also be minimized with proper planning.  Too many times, a loved one does not leave specific bequeaths and the family is left to divide up sentimental items among themselves.  This can cause heated arguments and long standing family feuds.  Don’t let this happen to your loved ones.  Give them a road map to follow so that everyone knows what is meant for them, and take away any reason for family in-fighting.

You can’t just set it and forget it

Estate plans need to be regularly reviewed and maintained.  Anytime you have a major life change, such as a birth, death or remarriage in the family, you should update your estate plan.  If you make any large purchases such as a house or car, review your plan and see if adjustments need to be made.

Even if you don’t have any major life changes, you should review your estate plan every couple years.  You need to check your beneficiaries and make sure they are still correct.  You will also want to work with your estate planning professional to follow any changes in the law.

The passing of time can also be a good reason to look over your plan.  If you are nearing retirement or age 70 ½, it’s time to review.  Make sure that your finances are in order and you are nearing your retirement goals.  Once you reach 70 ½, the government will force you to take required minimum distributions from most tax deferred retirement accounts.  You will want to take these required withdrawals into account when reviewing your plan.

Estate planning is essential for everyone and can do so much for you and your loved ones.  While creating an estate plan may seem overwhelming, our team can provide assistance that makes the process easy and understandable in the most efficient way possible.

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