When the topic of “Estate Planning” comes up, many people assume it is only for the wealthy. However, this is a common misconception. Regardless of your financial status, it is important to have a plan in place for your assets and loved ones after your passing. You may not think you have much to leave behind, but what you have worked hard for may hold great value to someone else. Whether it is a car, apartment, or a portfolio of properties, these are your assets and you should have a say in who receives them.
Death is inevitable for all of us, and we cannot take our possessions with us. Do you want the state to decide who inherits your belongings based on their laws? Most people would prefer to have a say in the matter. A proper estate plan can give you that control and make the transfer of assets a less complicated process for your loved ones. It is important to note that estate planning is not just about planning for death, but also for life. This aspect of estate planning is often overlooked or ignored.
Do I need estate planning if I am not wealthy?
Yes, you do! The misconception that estate planning is only for the wealthy is a common one. When discussing estate planning with our clients, we like to start with the basics. For example, do you have children under the age of 18? If so, then you need an estate plan. What will happen to your minor children if both you and your spouse pass away? Who will take care of them? By creating a Will, you can designate a legal guardian for your children who will be responsible for their upbringing and welfare. Don’t you want to have a say in who that person will be?
Whether you have a savings account with $20,000 or own three brownstones, planning for life is crucial. Estate planning is not just about passing on assets to the next generation, but also about who will make medical or financial decisions on your behalf if you are unable to do so. A good estate plan includes a healthcare proxy, which allows a designated person to make medical decisions for you, and a durable power of attorney, which allows someone to make financial decisions on your behalf. If you were to suffer from dementia, having these documents in place would be beneficial.
What are the benefits of estate planning for those who are not wealthy?
Many people wonder if they need estate planning if they are not wealthy. The truth is, planning for the future is essential for everyone. Life is unpredictable, and having a solid estate plan can help prepare for unforeseen circumstances.
- By creating a Will, you can appoint a legal guardian for your minor children.
- By creating a healthcare proxy, you can empower someone you trust to make medical decisions on your behalf in case of an accident or illness.
- By creating a durable power of attorney, you can authorize someone to make financial decisions for you if you become incapacitated.
- By creating a Trust, you can provide an extra layer of asset protection for your loved ones.
As you can see, estate planning is not just for the wealthy. It is about having control over your assets and ensuring your loved ones are taken care of in the future. You have the power to decide who, what, where, when, and how your estate is distributed and utilized. Don’t you believe you are entitled to a say? Contact our office today to schedule a free consultation with an experienced lawyer to see how estate planning can benefit you and your loved ones.
