One of the most common misconceptions about estate planning is that it is something that only wealthy people need to do. The truth is that almost every adult needs an estate plan, and that applies even if you feel like you don’t have many assets. An experienced Oklahoma City estate planning attorney can help you evaluate your current situation and explain why an estate plan may be beneficial. Keep reading below to learn all the details.
What Is Estate Planning?
When many people hear the term “estate planning,” they think of rich families trying to minimize their taxes or protect their fortunes. However, that is not the primary purpose of estate planning. The major benefit of having an estate plan is to ensure that your wishes are carried out after your death and to ensure that your family is protected through an already difficult and emotional time. Those things matter regardless of the size of your bank account or how many assets you may have.
How Can an Estate Plan Help Me?
You may be wondering how you can actually benefit from an estate plan if you don’t have many assets. Even if you have a modest estate, proper planning can provide many benefits.
Appointing a Guardian for Minor Children
For anyone with minor children, this benefit alone should be reason enough to implement an estate plan. With a proper will, you can name a guardian that you would want to raise your children in the event of your death. On the contrary, if you die without a will, you would have absolutely no say in who raises your children. Instead, a judge would decide who gets selected as their guardian.
Avoiding the Probate Process
Probate is the process of managing and administering someone’s estate after their death. This process can be lengthy and expensive, and it could cause quite the headache for your family during an already difficult time. Through a proper estate plan, your family may be able to avoid the probate process completely. This could save a significant amount of money and allow assets to be transferred to your family much more quickly.
Preventing Family Disputes
After a loved one’s death, emotions are already running high. The last thing you want to happen is to have family members fighting over assets or other matters. With an estate plan, you can specify your wishes instead of leaving your family to guess about what you would have wanted. This greatly reduces the chance of conflicts and disputes and helps maintain solid family relationships going forward.
Common Types of Estate Planning Documents
Even individuals with few assets can benefit from a variety of estate planning documents. Sometimes, just having a will is not enough to meet your needs. Some common types of estate planning documents you may use are:
- Last Will & Testament - directs how your assets will be distributed after your death
- Living Trust - allows you to maintain control over your assets during your lifetime with an easy transfer of ownership after your death
- Advance Healthcare Directive - used to make your own decisions about potential end of life medical care so that your family is not forced to make those difficult choices
- Durable Power of Attorney - lets you appoint someone to make decisions and take action on your behalf should you become incapacitated and unable to do so on your own
Remember that estate planning is for everyone and not just the rich or wealthy. Talk to an experienced lawyer today who can help you put a comprehensive plan in place that meets your needs and helps you achieve your goals.