Do I need an estate plan?

Estate Planning is an uncomfortable topic for most people. I commonly hear people describe this as a morbid process. Who wants to think about their own death? Often, the thing that motivates most people to do a plan is something risky – possibly an impending trip or vacation. Then, usually they want to get the plan done as quickly as possible, mostly because they have waited until the last minute to get started. Although a quickly done plan is still better than no plan at all, it's always better to spend some time, when you're not under the stress of an impending flight, surgery, etc., to prepare a plan.

To that end, perhaps a change in focus would help make it easier to get started. Estate planning is not about the things you possess, and what happens to them when you die. An Estate plan is the message you send to those you care. It offers you a chance to decide who can speak and act on your behalf, and it makes clear how you want things to operate in the future. Think of it as making better the lives of those you care about.

Why would I need more than a will?

Most people think of estate planning as putting a will together; however, that is just one aspect of a complete plan. Estate planning allows you to make arrangements for dealing with your affairs if you are unable to do so yourself, either because of incapacity or because of a death. Thus, an estate plan includes preparation of additional documents to ease the administration of your affairs if those circumstances occur.  Documents that are commonly part of an estate plan include powers of attorney (medical and financial), living wills, appointment of guardian, and HIPPA authorizations. Depending on your circumstances, trusts may also be used to complete your plan.

What can you accomplish with an Estate Plan?

The most important thing you can accomplish with a plan is to ease the chaos that follows any tragedy. Through a plan, you make known your wishes of how you want your things distributed and who you want in charge of your affairs. You can continue to provide financial care for those you care about, like your minor children. Through planning, you can take into account tax consequences and maximize your resources. If you like, you can make contributions to charitable organizations that are aligned with your values. In sum, through planning you can make it easier for those around you.

Isn't estate planning just for rich people?

Limited resources still require planning because you don't want to exhaust your few resources in court fees and attorney's fees. Even if you don't have a lot of resources, you still need to make arrangements for your minor children, as well as for yourself. An estate plan does not have to be expensive. If your estate does not require tax planning and does not have complicated issues, it can be completed in a cost-effective way.

At its core, an estate plan is about the people, ideals, or goals that are important in your life. Through planning, you dictate the messages you send regarding the people or the things you value rather than letting the courts or others dictate them for you.