Do I Need an Estate Plan If I’m Not Rich?
Feb. 8, 2022
You may be wondering if you need an estate plan if you're not rich. The answer is yes - everyone should have an estate plan in place, no matter how much money they have.
In this post, we will discuss the reasons why everyone should have an estate plan and what happens if you don't have one.
Everyone Needs an Estate Plan
Regardless of your income level, you need an estate plan if:
You want to provide for your loved ones after you die. An estate plan can help ensure that your loved ones inherit your assets and are taken care of financially after you're gone.
You want to make sure your wishes are carried out after you die. An estate plan can help ensure that your wishes are followed, such as who you want to inherit your assets and what type of funeral you would like.
You want to protect yourself and your loved ones from financial hardship in the event of your death. If you don't have an estate plan, your loved ones may have to go through probate which can be expensive and time-consuming.
You want to avoid estate taxes. If you die with a large estate, you may have to pay estate taxes which can be costly. An estate plan can help reduce or even eliminate your estate tax liability.
What Happens if You Don't Have an Estate Plan?
If you die without an estate plan, your assets will be distributed according to state law. This may not be what you would have wanted and your loved ones may have to go through probate to get them. Worse yet, your loved ones may not know what you want to happen with your assets after you die. This can lead to disagreements and conflict.
Absent an estate plan, your loved ones may not be able to access your assets (or may have to wait a long time to get them). This can cause financial hardship. And without an estate plan, your loved ones may have to bear the burden of paying your estate taxes.
Finally, parents of minor children who pass without an estate plan, risk their children being placed in a home that they do not want. All parents need to have a plan that identifies guardians for their minor children so they can ensure their children are cared for in the way they want (by the people they want).
My Office Can Help You Craft an Estate Plan That Works for You
It's important to have an estate plan in place regardless of how much money you have. An estate plan can help ensure that your wishes are carried out, protect your loved ones from financial hardship, and avoid probate. Contact my office for a free strategy session and I’ll help you get clear on the plan that works best for you.
Teach Smart Spending Habits. One of the best things you can do for your children is to teach them how to spend money wisely. One way to do this is by setting a good example yourself. Show them that you value savings and spending money wisely. Help them save for something they really want, rather than just giving them what they want outright.