Estate planning doesn't have to be done by older and wealthier people.
Even if you have a lot of money, experts say you should consider how you want your assets to be distributed upon your death.
Getting your estate and health-care directives in order is important for the sake of yourself and your loved ones.
"A lot of people think they can do their estate planning later, but that's not always the case." Some horror stories have been seen when people don't address the situation adequately.
Some of the key estate-planning issues need to be considered sooner than later.
After you die, you should have a will detailing how you want your assets to be divided. Many templates can be downloaded for free from websites.
Most people think a will is a slam dunk.
If your first choice isn't able to fulfill the role, you need to appoint an alternative. Details of who is to receive which assets and whether there are any conditions that need to be met before beneficiaries receive their inheritance are required.
If you have dependent children, you need to name a guardian. It doesn't always make sense if one person is in charge of the will and dependents.
If you wanted all your assets to go to your spouse or children, other heirs may contest that wish if you don’t have a will.
One person taking care of dependents may be better than another taking care of them.
Many married people think that all of their assets and investments go to their spouse without a will. It's often not the case.
She explained that state law dictates that if there is no will, the state will provide one and that assets are evenly split among all heirs. If you don't have a will, other heirs can contest your wishes about who gets your assets.
Setting up beneficiary designation for your assets is a cheap and simple alternative to executing a will in court. You can do that with everything from bank accounts to investment accounts.
The assets are removed from the estate and the court costs are reduced. Most middle-class Americans are able to cover most of the value with beneficiary designation. Things go easier with it.
If you become unable to make health-care decisions, it's important to choose a person to do so. A health-care power of attorney gives someone the power to make decisions. It is possible to choose anyone, but make sure you are comfortable with them.
You can detail health-care and medical treatments you don't want if you have a health-care power of attorney. The health-care agent will have to follow those wishes.
The majority of people want to make their own decisions. You can do it yourself with relatively simple documents.
If you change your mind, you can update them.
The power of attorney document needs to be signed by your health-care agent and your doctor.
A living will is similar to a health care power of attorney. The health-care agent will make sure that your wishes are followed.
A "do not resuscitate" order is a separate document that is part of a living will that states what conditions you would not want life-saving treatments to be used for.
People are often required to fill out their own forms when it comes to health-care directives. If you are admitted to a hospital emergency room, make sure that your health-care agent is present so that they can recognize your authority.
Health-care power of attorney and living wills are the most important things to address because they kick in when you die. When you die, the rest of the stuff applies.
Estate planning doesn't have to cost a lot. You can get basic wills and other documents for free at lawdepot.com. Only the creator of the will and one or more witnesses are required to sign the forms.
You can get templates for estate planning documents and guidance in filling them out for less than $100 on online sites.
If you have a significant amount of assets and more than a few beneficiaries, you should have a lawyer check things out, according to the author.
It will cost you between $100 and $400 per hour to hire a lawyer. Simple wills should not need more than a couple of hours to be drafted.
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