Estate planning is a topic that we’ve all come across, but there are several things surrounding it that need to be clarified. Some believe that it’s only relevant to others and not to themselves. However, that is incorrect. Estate planning is crucial for everyone, whether young or old, healthy or sick. Essentially, it is a plan for life, not just death.
• Estate planning is crucial for everyone, even the young and healthy. It helps to prepare for unforeseen events, such as unexpected illness or injury, by having powers of attorney and other plans in place. Additionally, young people face a higher risk of death from automobile accidents than older individuals.
•People often forget to update their beneficiary designations. This is because wills and trusts do not control beneficiary designations. Changes in their lives may prompt them to change their will or trust, but they may not coordinate these changes with their beneficiary designations. As a result, their assets, such as insurance, retirement plans, and IRAs, may go to unintended beneficiaries.
•It can be difficult for individuals to come to terms with their mortality, leading to procrastination in estate planning. However, estate planning is a thoughtful and caring act that benefits family and friends.
•Choosing individuals to make decisions on behalf of an individual, such as agents, guardians, executors, or trustees, is a critical aspect of estate planning. It is essential to consider these decisions carefully and not simply name the first person that comes to mind. Good choices ensure that an individual’s wishes are carried out, while poor choices can lead to conflict and asset waste.
• Leaving assets to children or other beneficiaries outright without considering other options is a common mistake. Leaving assets in the trust may give beneficiaries advantages such as protection from creditors, ex-spouses, and their indiscretions.
• Estate planning documents should be updated periodically to reflect individual circumstances changes. Life is constantly changing, and events such as the birth of a child, divorce, re-marriage, a substantial increase or decrease in assets, or changes in health can significantly impact an estate plan. Regular review of an estate plan can help keep it current and relevant.
Estate planning is life planning. Let the McGee Law Firm help you implement a plan that fits your life and wishes.
Compliments of the McGee Law Firm, Attorney Brandon McGee
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