Many adults know what estate planning is, but they don’t really know why they should have one in place. Estate planning helps you to decide how your property, finances, and personal decisions are going to be handled if you become incapacitated or when you die. While estate plans are often associated with the wealthy, they’re beneficial for almost all adults.
Even if you don’t have considerable wealth, an estate plan can outline what to do with your home, family heirlooms or digital assets. They can also cover things like business interests, bank accounts and who you want to care for your minor children. However, there is another reason that every adult should have an estate plan in place:
Decisions for incapacitation
If you become incapacitated, you can’t make your own decisions, but that doesn’t mean that those decisions go away. Instead, you should appoint someone who can make them for you via powers of attorney. Finances and healthcare are the two areas where you need to set a power of attorney that gives the person of your choosing the legal right to make decisions for you. The same person can handle both areas, or you can have someone different for each one. This helps make sure that your wishes are respected, even if you cannot express them yourself.
If you do not have pre-set designations in place, your loved ones may have to go through time-consuming, expensive legal proceedings to gain the right to make those decisions on your behalf. That can delay important medical and financial actions, and put a significant emotional burden on those you love at an inopportune time.
Creating an estate plan isn’t easy, even if you only have limited assets. Working with someone familiar with your wishes and the ways to make them legally enforceable may make the process simpler so you have peace of mind in knowing that your plan is in place.
