Estate Planning: Being Prepared for the Inevitable

No one likes to think about death, but it's a reality we all must face. Even though our death is an unpleasant topic, we must think about the impact it will have on our families and plan accordingly. We must ask ourselves some tough questions like, "Who will care for my children?" "Who will get my house, my life insurance, or retirement account?" or "Will my spouse have enough money to meet monthly expenses?" When these questions go unanswered, the consequences of an untimely death can be disastrous. Having a will or trust can help avoid these consequences.

Most people know that they should have a will or trust, but they put it off calling an estate planning lawyer far too long. What is keeping you from taking this important step? Your family is depending on you.

Once your estate plan is in place, you should have your will or trust reviewed every 5 years or when other significant events happen in your life such as a divorce, a death in the family, a significant change in income, or the birth of a child.

When you do call and visit an attorney, you should expect the process to be handled professionally and confidentially. You will need to provide the names, addresses, and birthdates of your family members and a list of assets with approximate values. Be prepared to discuss who you want your assets to go to and who should manage those assets in the meantime. It's also a good idea to have an alternate plan if the first should fail.

After gathering all the information, the lawyer will make a recommendation as to what documents fit your unique situation.

Nearly everyone needs a will. A will is the only legal way to name who you want to take care of your children.

Trusts are useful not only for people with a lot of money, but for families with children still at home. They provide a central place to manage the money and make sure the children's needs are being met.

A lawyer can also prepare a Health Care Directive, sometimes called a living will, to express your desires regarding medical decisions.

A Durable Power of Attorney can be drafted to determine who will make financial decisions on your behalf if you become incapacitated and unable to do so.

Don't put it off. Get your estate plan in place right away.