Have you ever heard the advice "plan for tomorrow, today"? It seems sensible, right? Yet, when it comes to our own mortality, many of us neglect to take action.
Estate planning isn't exactly a cheerful topic, but it's a crucial part of ensuring your wishes are met after you're gone. Here's why you shouldn't wait:
Everyone Needs an Estate Plan
An estate is simply everything you own – your property, possessions, assets, and even debts. Whether you're a homeowner or renter, retired or working, young or old, you have an estate.
If you don't have an estate plan in place, the court will decide how your assets are distributed. This can lead to lengthy legal battles and hurt feelings among family members.
Without a Plan, Things Get Messy
If you don't have an estate plan in place, the courts will decide how your assets are distributed. This can lead to lengthy legal battles and hurt feelings among loved ones.
Your Estate Plan Can Cover a Lot
An estate plan is more than just a will. It can include things like:
- Beneficiary designations: This ensures your life insurance and retirement savings go directly to the people you choose.
- Trusts: These can help your heirs avoid probate, a lengthy and expensive court process.
- Powers of attorney: This allows someone you trust to make financial and medical decisions for you if you're unable to do so yourself.
- Living will and medical directives: These documents specify your wishes for medical care in case of incapacitation.
- Digital assets: With our increasingly digital world, consider how you want your online accounts and information handled.
Why a Will Isn't Enough
A will can specify who inherits your belongings, but it doesn't guarantee a smooth transition. Your heirs may still need to go through probate court to have assets transferred into their names. Probate can be expensive and time-consuming, tying up assets when they're most needed.
Beneficiary designations on qualified retirement plans and life insurance policies usually override bequests made in wills or trusts. Many people never review the beneficiary designations on their retirement plan accounts and insurance policies, and the estate planning consequences of this inattention can be serious.
Keeping Your Plan Up-to-Date
Life changes, so your estate plan should too. It's important to regularly review your plan with a qualified estate planning attorney for major life events like marriage, birth of a child, or a move.
Getting Started
We developed and refined our proprietary process, the Questpoint FORMula©. This process monitors your critical life and financial events, staying fluid and dynamic, to help you make mid-course corrections as needed in pursuit of your destination. Talking to a qualified financial professional is a great first step. At Cornerstone Financial Group, we will work with you to create a plan that works for your specific situation and the goals you want to reach, as well as recommend an estate planning attorney and tax professional to guide you through the legal and financial aspects of creating your plan.
Don't wait until tomorrow to plan for the future. Take action today and ensure your wishes are carried out.