The Top Four Things You Need To Know About Estate Law
What most people do not realize is that we all have something worth protecting in the event of our temporary passing. While some assets are obvious, some are not. Most people tend only associate the word "assets" with the possessions of wealthy individuals. Not true. Here are five of the top things everyone, including you, need to know about estate law in order to protect your family and assets, current and future.
# 1: No Estate Is Too Small
The thing that you have to realize about estate law is that it encompasses more than just your assets. It also allows you to provide detailed instructions for your care (in the event of your mental disability) or the care of others under your purview, at the time of passing. In addition, most people do not realize that their insurance policies and retirement plans are also considered assets, which can definitely help keep you organized.
# 2: A Will Is Not Enough
Estate law can be pretty complicated, given all the different aspects that are included. As such, a simple will just will not suffice as enough planning or direction in the event of your passing. In fact, wills are typically so limiting that they do not include instruction for your care (or the care of others under your purview) or guarantee assets such as life insurance and retirement. They do, however, guarantee probate, which, in essence, means delays with respect to your family obtaining their inheritance. They're not personal, and often fully miss the big picture of your intent with respect to your assets and how you want them handled in your absence.
# 3: It's Never Too Early To Start Planning
A common misconception about estate law and planning is that you have to have a certain age or accumulate a certain amount of wealth in order to begin the planning process. That could not be further from the truth. Your estate encompasses more than just assets; it includes directions and assignments for any loved ones under your purview, like children. In the event of your passing, it is imperative to have a plan in place for your children, or they could end up in the custody of the state.
# 4: Having a Plan in Place is Only Part of Your Work
Unlike a will, for example, an estate plan is an ongoing process. You may start your planning process, but it is definitely a work in progress through your life; you make adjustments as needed. As such, whenever there are changes in your family life, such as marriage, divorce, the addition of children, or becoming the caretaker of a loved one, you will then need to update your plan to reflect those changes. The same is true for your financials, such as retirement savings and the acquiring or selling off assets, like property or stocks and bonds.
It is never too early to learn about estate law and start planning. You may think you're too young or there is always more time, but the truth is, time is not guaranteed. With a plan in place, you can ensure your assets and family end up where you want them to.
