Some people believe that estate planning is only necessary for the wealthy, but this simply isn’t true.
There are plenty of reasons why you should do estate planning, regardless of your net worth.
For one thing, this will help to define who inherits your assets. It also determines who will be the guardian of your minor children or any dependents with special needs. The components of estate planning usually include a will, a durable power of attorney, and a medical power of attorney.
Establishing a Trust
Regardless of how much money you have, we feel legacy planning is the best way to protect the financial interests of your family when you are no longer here to do so.
One tool at your disposal during estate planning is the trust. A trust is a key instrument in helping you minimize estate taxes and probate exposure. As you can tell, it could be worth a lot to you and your heirs to do a little planning ahead.
Keep Good Records
If you have worked with someone in the past, and you THINK your estate is properly structured, it may not be. There have been substantial changes in estates laws and taxes in the last couple of years and your plans may no longer accomplish what you think. Also, it’s likely that your situation has changed dramatically since you last examined this part of your financial picture.