Don’t let the term “estate planning” fool you. If you’re an adult, you need an estate plan, whether you rent a studio or own a mansion.
Many people don’t have a plan. Here’s why you need one and how to get started:
Why Everyone Needs an Estate Plan
Estate planning isn’t about how much stuff you have. It’s about protecting what matters most: your loved ones and your wishes.
Think of it like insurance for your relationships. An estate plan makes sure that if you’re in an accident and can’t make medical decisions, your family knows what you’d want them to do. It also gives them a road map for managing your assets and liabilities if you’re incapacitated and after your death. It provides clarity and minimizes stress.
Estate Planning 101: Three Steps to Get Started
1. Know what legal documents you need. Beneficiary designations, a will, an advance directive for health care, and medical and financial powers of attorney will meet most people’s needs. Some situations warrant a trust.
2. Work on one document at a time. Start by adding beneficiary designations to your accounts. These instructions let your financial institutions know to whom they should give your money when you die. They also keep your assets out of probate and supersede your will.
3. Inventory your assets and liabilities. Create a document showing what you own and owe. Store it securely and let your family know how to access it in an emergency. It can help them pay your bills if you’re unable and unwind your estate when you pass away.
Life insurance can also be part of your estate plan, providing financial support for dependents after your death. We’re here if you have questions about your policy or want to explore coverage options.