You may have heard from a friend or loved one that the best thing they’ve done is make an estate plan. They now feel safe about their future after making an estate plan. Maybe it’s time for you to make an estate plan.
If you don’t know where to begin when making an estate plan, then you may need to consider the following questions:
1. Why should I make an estate plan?
Simply put, the intent of an estate plan is to have your final wishes made clear in anticipation of your passing. An estate plan mostly establishes what will happen to your assets and who will inherit from you.
2. When should an estate plan be made?
It’s hard knowing if you’re making an estate plan too soon or late. However, there’s often no better time to make an estate plan than now. You can’t always be sure what will happen in the future. It might benefit you to prepare in advance.
3. What is the purpose of a power of attorney?
In your estate plan, you can name a power of attorney. A power of attorney is a representative who acts on your behalf if you’re incapacitated. A power of attorney can benefit you, especially if you’re older. They can handle your financial and medical decisions in an emergency.
4. When can an estate plan be updated?
People often update their estate plans every few years to include new assets. But, a divorce, marriage or childbirth could also be events that require you to re-review your estate plans.
5. What if an estate plan is never made?
If you pass away without an estate plan, then you’ve died intestate. Intestate means that your estate will be handled by the state. But, the state often doesn’t have your best interests in mind and will distribute assets haphazardly.
6. How complicated is an estate plan?
There are many intricate estate planning laws. It’s smart to reach out for legal help when drafting your estate plan so that you know about all your options and understand how to achieve your goals.