The Importance of Estate Planning
The concept of estate planning has long been associated with overtly wealthy families, but it should be regarded as a necessary step for all those wishing to safeguard their family’s future. When planning for the future, it is all too common for people to focus exclusively on developing their careers and establishing financial stability. The process of estate planning can provide some valuable peace of mind and guarantee that a person’s wishes are carried out in the event of their death.
Despite its importance, many regard estate planning as an uncomfortable topic and one to put off until later life. However, estate planning experts — such as experienced attorney-at-law Edgar Paltzer — recommend beginning the process as soon as possible to ensure that loved ones are well taken care of.
Control Over Assets After Death
When estate planning, it’s crucial for anyone with assets to decide how they should be distributed after death. Families do not have to be excessively wealthy to have procured second homes or stock market shares, and failing to give instruction on how these should be distributed will mean that a person’s wishes will not be followed. Without the provision of a detailed estate plan, assets are divided up according to court proceedings. This process can be time-consuming, stressful and lead to family disagreements.
The embedded PDF looks at what happens in the event of someone dying without a will.
As well as planning for financial assets, it is important to consider the long-term future for any children involved. Parents of young children may find it a difficult topic to broach, but without a clear plan, the courts will decide who cares for them in the event of the premature deaths of their parents.
Important Documentation
It’s useful to have a thorough understanding of necessary documentation for effective estate planning. The will is the primary document used in estate planning, which names an executor to oversee distribution of assets and guardians of young children should this be necessary. Equally, there are other documents useful for setting out intentions. Living wills are ideal for detailing instructions for end-of-life care, and in the event of incapacity, healthcare proxy or power of attorney documents designate an individual to make medical decisions on the person’s behalf.
With regards to the distribution of assets, it is also possible to use a document called a personal property memorandum to bequeath personal items to others.
