Estate planning preserves your legacy and protects your loved ones long after you’re gone. Many people have land, financial assets, and other types of personal property that they would like to pass on to loved ones but do not have an estate plan in place to carry out their wishes. This is a big mistake in cases where the person unexpectedly passes away. It’s never too early to begin estate planning.

A Helpful Guide to Estate Planning

What Is Estate Planning?

A person’s estate consists of their properties, assets, and liabilities. Estate planning uses a will or trust and ensures that your estate goes to your intended beneficiaries — such as your children and other family members — if you become incapacitated or deceased. Estate planning includes designating legal guardians for your minor children, eliminating confusion in the distribution of your assets, reducing taxes and financial burden on your family and preserving your wealth with minimal involvement from state courts.

Who Needs an Estate Plan?

Estate plans are for anyone who has possessions that are not reserved for the retired and wealthy. Anyone who anticipates a deterioration of their health should also consider drawing up a plan before they are unable to do so in the future. Individuals who own real estate and personal properties in different states should set up an estate plan. Those who have dependents, a small business, or a significant amount of wealth should also begin estate planning to make sure that their assets are protected.

Why Is It Important to Have an Estate Plan?

When there is no will or trust in place, an incapacitated or deceased person may leave family members with financial burdens or confusion that leads to family disagreements. If there isn’t a plan in place, you’ll leave your assets in the hands of the state in which you reside. If the state determines that there aren’t any rightful beneficiaries. A will is also designed to protect your legacy by making sure all of your children, including those from a previous marriage, are protected and receive inheritances as you wished.

How Is an Estate Plan Carried Out?

Before an estate plan is carried out, it must go through your state’s probate process to be verified. An estate plan is then carried out through a will or trust by appointed individuals or fiduciaries. An executor of the will, a trustee, or power of attorney are examples of fiduciaries who are able to carry out specific parts of the will according to your wishes. It’s crucial to appoint these individuals during your estate planning process.

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