Many people struggle with the idea of creating an estate plan. On one side of things, they understand that it’s something that will benefit them, their family and their money. Conversely, they worry about the process itself, such as making the right decisions and dealing with the stress that it will bring.
Should you find yourself on the fence and struggling to decide what comes next, it’s time to take action. Everyone needs an estate plan and you’re no different.
Why is it important?
It may not be required by law, but creating an estate plan is important for many reasons. Consider the following:
- Asset protection: For example, if you want your assets to go to someone in particular upon your death, an estate plan is the only way of guaranteeing that this happens. Without this, you leave it to the court to make the final decision.
- Incapacity planning: Many people associate estate planning with nothing more than their death, however, there are other details it can tackle. Incapacity planning allows you to make key decisions now, that could affect you and your loved ones in the future. For instance, a health care power of attorney allows you to outline who will make key medical decisions should your incapacity keep you from doing so.
- Guardianship: You’re likely to have concerns about what would happen to your children in the event of your death. Naming a guardian allows you to ensure that the right person will raise them should this happen.
- Long-term care planning: You never know what the future will bring with regard to your health and the type of care you require. Maybe you need in-home care at some point. Or maybe you find yourself requiring a short and long-term stay in a nursing home. The right long-term care strategy allows you to plan for everything in advance.
With the above in mind, it’s easy for you to understand the importance of creating an estate plan. If you have an estate plan but can’t remember the last time you reviewed it, that’s something you should do in the near future. It will give you peace of mind.