We all want to set our families up for success when we’re gone. Many times, most people believe that estate planning is something you do if you’re wealthy, have property, or in the later stages of your life. As it turns out, an estate plan is for everyone whether you’re young or old or if you’re wealthy or just starting out on your career path. If you’re like most people, that may come as a surprise to you.
So let’s get back to the basics: What is an estate plan?
What is an estate plan?
An estate plan is a plan that tells the government (and your family) what happens to your money and personal belongings when you pass away. If you’ve ever thought about what it’s like to leave a legacy for generations to come, drawing up an estate plan is a big part of making that happen.
It’s a common misconception that estate plans are only for the wealthy, those with businesses or properties to pass down, or for people in their old age. While those are all great reasons to have an estate plan, they’re definitely not the only ones. In fact, if you’re a living and breathing human being and at least 18 years old, you should think about developing an estate plan. This plan tells your family (and the state) what should happen to you, your belongings, your money, and even your children when you pass away.
What types of estate plans exist?
An estate plan can be simple, or it can include a portfolio of different documents. But most plans include your will, letters of instruction (what people should do with your belongings and who it goes to), powers of attorney documents (both medical and financial), and beneficiary information.
What is an estate planner?
An estate planner is someone who helps you with the ins and outs of creating an estate plan. If you’re thinking about creating your estate plan, but have no idea where to start, this person would be able to walk you through the process step by step.
If you’re young and don’t have a lot of investments, property, or wealth, you may not need to spend your extra resources working with an estate planner. There are some reputable estate planning companies online that can help you do the same thing.
Do I need an estate plan?
Yes! We believe everyone needs an estate plan no matter what their financial status is. An estate plan will ensure that you are leaving your family and other beneficiaries in good hands when you pass away.
Like we said earlier, you don’t want the state to decide where your money goes, or your children for that matter. That’s why creating an estate plan as soon as possible is a wise next step for you and your family. In fact, why not put it on your goal list for 2023? If you’re interested in learning more about estate planning or want some help walking through the process, your SageSpring financial advisor is here to help. Contact your advisor today.