Estate planning is surrounded by many myths. One of them is that only necessary once you have a certain amount of wealth. But this is not the case. An estate plan is necessary even when you have only a few assets.
Estate planning protects the assets you do have
Regardless of your net worth, you worked hard to get the assets you have. Thus, you deserve to protect them and your legacy. Without a will, your existing assets may not benefit your loved ones as you wish if anything happens to you.
An estate plan allows you to determine what will happen to all your assets, including non-cash ones, such as digital assets, investment accounts, retirement accounts and life insurance policies.
An estate plan protects more than assets
An estate plan should include more than a will. You may have a guardianship designation, a living will and a healthcare power of attorney, among other things. These documents allow you to choose a guardian to take care of your minor child when you are unable to, list medical treatments you would or would not want to be used to keep you alive and choose someone to make medical decisions on your behalf.
Therefore, besides protecting your finances, an estate plan helps you protect your kid(s) and prepare for possible illness.
Unfortunately, you cannot predict the future. Thus, you should take steps to plan for your passing today. Besides, your estate plan documents won’t be effective until you die or become incapacitated. Thus, you can update them when you get more assets or if circumstances in your life change. You should get legal help during estate planning to make informed decisions.