Estate Planning and Procrastination

Estate planning is an important and often overlooked topic. Learn more in this guest post by Larell Baldwin.

Estate planning misconceptions

There are many reasons why people don’t do any estate planning. Some think they’re too busy. Or they don’t own enough assets. Or they’re not old enough.

Many people are confused, and rightly so, by incorrect and misleading information from professionals who are influenced by the products or services they sell. As a result, many consumers don’t know what to do or whom to trust. So they do nothing.

Some think the only reason to do estate planning is to write down “who gets what” after they die. They think their families will be able to decide that among themselves. And, of course, no one likes to think about his or her own mortality. As a result, many families are caught off guard and unprepared when incapacity or death strikes.

If You Do Nothing

So, what happens if you do nothing? If you become incapacitated and you own assets in your own name, the court will take control.  When you die, your estate will go through probate. The main difference is that your assets will be distributed according to state law-which may not be what you would have wanted.

In many states, for example, if you are married and have children, they will each receive a share of your estate. This means your spouse could receive only a fraction of your assets-which may not be enough for him/her to live on.  If you have minor children, the court will control their inheritances and appoint a guardian to raise them-without knowing whom you would have chosen.

Of course, it doesn’t have to be this way. All you have to do to keep control of your assets, avoid probate, and save taxes is to plan now.  Estate planning is not just for the old or for the wealthy. It’s something everyone needs to do–regardless of your age, the size of your estate, or whether you are married or single.

To learn more about estate planning and living trust please click HERE.