Estate planning is necessary for adult Americans.
Adults have many responsibilities.
They pay bills, go to work, and may even be caring for children or aging loved ones.
In the midst of hectic schedules, it is all too easy to forget important tasks.
According to a recent Big Easy Magazine article titled “Estate Planning Is Essential and Here’s Why,” estate planning a necessary (but often overlooked) task.
Many Americans do not see the need for estate planning.
They mistakenly believe it is only important once they have acquired wealth and assets.
This assumption can lead to problems for the loved ones left behind.
Why is estate planning important?
Estate planning is necessary because it involves more than simply distributing what you own to heirs.
If you have minor children, you must designate a guardian in your last will and testament.
This the means by which you can ensure your children who will rear your children with your values should they become orphans.
If you die without a last will and testament, then your affairs will be settled through the intestacy laws of your home state.
Although many people think this is sufficient for them, they often fail to recognize what this means for their loved ones.
If you die without an estate plan in place, it can have several negative and unintended consequences.
What are they?
The assigned probate judge will designate an executor for your estate on your behalf.
Because the judge does not know your specific circumstances, someone you distrust may be placed in charge of managing your estate and filing taxes on your behalf.
Another consequence of not prioritizing estate planning involves common law marriages and other partnerships.
Some states do not recognize these individuals as family.
As a result, you may disinherit your loved one because you failed to create an estate plan.
If you have a charity or other organization you would like to include in the distribution of your estate, you cannot do this if you do not have appropriate beneficiary designations, a last will and testament, or a trust.
Creating an estate plan with an experienced estate planning attorney is necessary for saving your loved ones time, money, and emotional stress when you die.
Reference: Big Easy Magazine (May 17, 2021) “Estate Planning Is Essential and Here’s Why”