When most people hear about estate planning, they think it's exclusively for multi-millionaires and families with old money. It couldn't be further from the truth. Planning ahead simply ensures that the wealth and possessions you have accumulated throughout your life are protected once you can no longer care for them. Some might argue that protecting your wealth is even more important for those who don't have much. Here are two of the top reasons everyone needs to consider estate planning.
It's your money
You work hard for the money you have earned and you have to control what happens to him, in life and in death. Sadly, over 55% of Americans die without ever writing a will. This number climbs to over 90% for people under 35. Dying without a will means that the laws of your state will control what happens to your property. If you have a long-time partner but are not legally married, they will not be entitled to any money upon your death. Instead, it would go to your closest surviving family member, even if it's your weird second cousin you never got along with. If you don't think you have enough assets to make a valid will, you should reconsider. The average American estate is worth almost $ 180,000. If you don't have a family or don't want to leave your money to them, your will may name a particular charity, school, or program as the beneficiary.
Protect yourself and your family
When most people think of estate planning, they think of wills and trusts, as discussed above. But it's actually a lot more complex than that. A proper will can control who will get guardianship over your children if there are no parents in the photo. He can give instructions for medical emergencies, such as organ donation, what to do in a coma, and "do not resuscitate" orders. If you no longer have the mental capacity to take care of yourself, it designates someone to look after you. Estate planning can even ensure that a beloved pet is properly taken care of if you die.
In conclusion, estate planning is an important part of everyone's life. Whether you are rich or poor, part of a large family, or single, you should always plan ahead. Consulting a lawyer can save you and your heirs high taxes. It can financially protect your loved ones in the event of an unforeseen death. It's your money and your life, so you should be the one to decide how they are both treated.