There is a common misconception that estate plans are only important for older people, or specifically those who enjoy having millions of dollars in assets to bequeath them to their loved ones. Estate plans are not only limited to your will or how you want to distribute your assets as people paint them to be. Even students who are still exploring the new waters of adulthood by searching for their first job or trying to pay off their student loans need to think of creating an estate plan for several reasons.
Estate plans essentially revolve around giving people of your choice an authority to handle many decisions for you as an emergency plan at the occurrence of any situation that prohibits you from handling them; be it physical or mental. These decisions might be about health care, financial obligations such as loan payments or bills, and many other important affairs. For example, you can state the exact conditions and duration in which you want to remain on life support. Due to the significance of estate plans and its encompassed information, seeking professional help from specialized lawyers to ensure that you have all essential documents is kind of a no-brainer. However, if you are still reluctant or weighing between the options of hiring a lawyer or researching the whole process and seeing it through yourself, here are some critical points to take into consideration while making this decision.
Should You Write Your Own Will?
Whether you decide to go for a will or a living trust, this should be the cornerstone of your estate plan. Wills are not only for determining the distribution of your assets, but it is also for leaving instruction and naming a guardian for your children. Many people focus all their attention on the question: “Can I write my own will?”, rather than asking the right question which is: “Should I write my own will?”. Thanks to the internet, there is not any scarcity in the information available, quick fixes, and DIY steps. With a few clicks and a simple Google search, you can find information nearly on anything that has been puzzling your mind. In this day and age, some videos on YouTube walk you through performing surgery on yourself, but that does not mean that you should do it. Unlike a revocable living trust, wills must be probated which means that it needs a court decision to be validated and applied. Besides writing a bullet-proof will, a professional can offer their assistance in being your trustee to apply your will and follow your instructions.
Saving Money, Time, And Energy
There are many people who consider the idea of planning and writing their own estate plans to avoid the costs of hiring a pro. However, this might end up costing more money due to several reasons. Normally, without an approved estate plan, you usually end up paying more money in the long run. Specialized attorneys in elder law prefer working on a flat rate. Also, they will be able to offer their help in dodging estate taxes. You can click here to understand more about how lawyer fees work. After comprehending these pieces of information, you will be able to decide on the best money-saving way to go for, with a simple comparison. Saving energy and time, on the other hand, are completely understandable when you seek the help of professionals.
You Only Get One Shot
Wills, estate plans, or living trust are the kind of affairs you need to get right at the first attempt. While you can always redo your DIY estate plan if you came to the realization that it is not accurate or satisfying. However, life does not work this way. These essential matters need to be excelled at from the first attempt in case anything happens. Hiring any lawyer is better than none, but when you are choosing a professional to handle something as sensitive as your estate plan, it is better to only seek the help of a specialized lawyer in this area specifically.
Many young adults, nowadays, are drowning in student loans and debt. These daily life struggles do not leave any room for thinking of writing a will. The idea may never cross their minds. However, writing an estate plan and making sure that your instructions are crystal clear is essential for anyone, regardless of their age and gender. When you are writing your estate plan, the decision of hiring a professional might cross your mind. Make sure to weigh down your options and their pros and cons before you land on the right and suitable decision for you. Meanwhile, if you’re thinking of a ‘great’ real estate investment, you may want to try to engage with house flipping.
Four Important Facts About Estate Planning
1. Regardless of net worth, everyone needs an estate plan
It is a common misconception that estate planning is only possible for the wealthy. The truth is everyone needs an estate plan. Some people dismiss the need for an estate plan because they don’t believe their estate needs it. It doesn’t matter how much your estate is; disagreements and disputes can often revolve around personal belongings and family heirlooms without a proper estate plan. The primary reason for planning is to protect beneficiaries. If you have minor children, you must appoint a guardian. Protecting adult beneficiaries from wrong decisions, outside influences, creditor issues, and divorce may also be necessary.
2. Naming the asset title is an important part of estate planning
Before the estate planning process begins, estate planning can reduce the stress of family lawsuits and family feuds. The plans you create will bring great relief to those left behind. Estate planning begins with the need to create an inventory of assets. The court may disregard your estate plan’s legality because of how an asset is titled or by a beneficiary designation that causes the asset to bypass your estate plan.
3. Age should not be a factor in estate planning
Anyone of legal age to own something has property. An estate is anything of value that you own. Houses, cars, bank accounts, retirement funds, and personal belongings constitute real estate regardless of size or weight. Once you have an asset, you need a real estate plan. Death is unthinkable, but remember that the state will decide who receives your property if you don’t have a fortune plan. You can make all these decisions yourself. That is the essence of an estate plan.
4. Estate planning minimizes probate
Probate can be simple or lengthy, depending on where you live. An estate planning attorney can help you plan the passing of your estate to your spouse or the next generation to avoid going through the legal process known as probate. Probate is ensuring that assets are named correctly in a will, paying any outstanding taxes, and approving the distribution of assets. With proper estate planning, you can make this an easy process.