When you hear about an estate plan, you might say to yourself, “I don’t own anything special, so I don’t need to create one,” but you could be wrong. There are a lot more reasons to have an estate plan than simply dividing up your assets. The following are four of those reasons.
- Protecting Your Children
If you have minor children, your estate plan is one line of defense to protect them. If you die without a plan in place, the court will determine who your children should live with. In dire situations, this means the kids could end up in state custody. It could also mean extended family members fighting each other for custody. Naming a guardian in your estate plan will help to ensure your children are left in the best hands possible; the hands you would have raise them if you couldn’t do it on your own.
- Protecting Other Beneficiaries
Aside from minor children, you may have other beneficiaries named in your will and estate plan. Taking the time to name beneficiaries, guardians, trustees and other individuals for specific tasks relating to your estate could help those individuals avoid contention and legal action after your death. Making a plan protects your beneficiaries from fighting with one another, as well as from losing assets in the event of a divorce.
- Protecting Your Health
Part of an estate plan is naming a healthcare power of attorney. This individual should be someone you trust to make decisions regarding your healthcare and your life if you are incompetent or otherwise unable to do so. If you don’t have a healthcare power of attorney, the medical professionals may be left to make these decisions, or they could leave it in the hands of your next of kin, which could possibly be someone you don’t trust.
- Protecting Your Assets
When it comes to asset protection planning, this can benefit you while you’re alive, as well as your beneficiaries after your death. If someone is going to sue you and you have a particular trust that holds your assets, those assets cannot be part of a settlement. This is a great way to protect them.
Estate plans are an essential part of preparing for the rest of your life, as well as the time after your death. If you are interested in learning more about what to include in an estate plan, or to learn more about why they’re important, contact an estate planning attorney in Queen Creek, AZ today.
Thanks to Citadel Law Firm for their insight into estate planning and reasons to create you plan.