Estate Planning 101: Why You Should Start Now

Published

March 3, 2022

Kyle Rutten is the digital content manager for Brestel Bucar, a law firm specializing in estate planning and mediation. He has written extensively on elder law, probate, estate taxes, and estate planning. Kyle is passionate about general financial literacy and believes strongly that it is becoming as important as nutrition for modern people.

The views and opinions expressed in this article are those of the author only and are not endorsed by Credit.com.

Estate planning is commonly viewed as a dry subject that most people lack interest in or postpone tackling until much later in life. It makes sense; there are a lot of factors in life that an individual must prioritize when in the midst of adulthood. Estate planning is one of those things we think is better to tackle during our retirement.

In reality, however, life is a highly unpredictable thing. It changes constantly, and can upend at any given moment. While that may seem wildly and brutally honest or uncomfortable, the fact of the matter remains true. Tackling your estate planning needs now will alleviate a lot of undue stress. And it can make the present moment and life in general a lot easier to enjoy. By applying intention and proper consideration to your future you can rest assured that you and your loved ones’ needs are covered. Here’s estate planning 101.

A Last Will and Testament Written in Accordance With Your Wishes

Commonly, when one thinks of estate planning 101, the thought following is commonly that of a last will document. Simply put, a will names a trusted executor and assigns them to carry out your wishes in a state probate court. The more detailed the will, the more streamlined the probate process will be for the executor you’ve appointed.

To ensure proper execution of your will, and to decrease the likelihood of any asset distribution being left ambiguous, it’s important to work with an estate planning professional who has navigated similar landscapes with multiple clients. This will ensure that they have seen just about everything that can make its way into a last will. They can assist you throughout a lot of the decision making processes that outlining a will present. And they can put your wants and needs first.

Stating Your Beneficiaries

In the event of your death, there will be immediate costs involved that require your loved ones to have access to sufficient funds. Funerals, medical bills, etc. are the last thing your family should be stressing about in the midst of your passing. A beneficiary appointed as the manager or recipient to your financial accounts is easy to set up. Also, it should be done right away, especially for those who have significant assets.

Even with a complete last will in place, probate courts can keep these funds locked up for a significant amount of time, a situation that is best to avoid. A “transfer on death” beneficiary is assigned access to your accounts. Following your death, putting your funds directly and immediately in their hands. They can then use these funds to cover the costs that come about, allowing your family to keep their focus where it’s needed most.

Write Up a Medical Directive

While a large portion of estate planning is done in preparation of death, some is done to protect you in the event that you become incapacitated and can’t make critical decisions for yourself. This can happen to anyone, at any time. This is another reason why estate planning should be considered now rather than later.

When a medical directive is in place, a person you trust is named in the directive to be the critical decision maker if you become unable. Not only is this ideal in a time of crisis, but it also makes things clear to your family during the said crisis. This can prevent a lot of unnecessary pain and confusion for those that you love. And, it also gives you assurance that your wants and needs will be carried out according to your wishes.

Safeguard Your Loved Ones with Life Insurance

In congruence with a last will document naming your beneficiary, having a life insurance policy in place can be a powerful tool for reducing burden and undue stress. Paying a premium on your life insurance while you’re alive stows away a significant amount of money that your beneficiary will have access to when the day of your passing arrives.

There are a lot of different forms of life insurance out there and finding the best option for you can be a difficult decision to make on your own. Working with a professional can make this process a lot easier, while also ensuring that you have a life insurance policy that caters to your specific situation.

Plan Your Estate Now and Enjoy Life for Years to Come

When it comes to planning your estate, the greatest thing to avoid is avoidance itself. Nobody enjoys the process of planning for their death, and even discussing it can be extremely unsettling. Even more unsettling, however, is leaving your grieving family in a situation that could have been completely avoided had the proper attention been given to your estate and financial affairs.

Don’t put estate planning off until you feel you’ve reached an “appropriate age” where things become more time-sensitive. Planning for your estate now allows you to refine the documents throughout your life. Situations change constantly, so having your thoughts and wishes organized today allows you to adjust accordingly, while also giving you a framework to build off as you need to.

Estate planning does not have to be a painful or difficult process; working directly with a professional can prevent you from making common mistakes, while also giving you peace of mind that all of your bases are covered. Begin estate planning today so you can enjoy tomorrow and the many years that lie ahead of you.