Although most estate plans include a will, a will and an estate plan are not the same thing. A comprehensive estate plan goes beyond a will, protecting you from unnecessary taxes and creditors, and even appointing someone to make medical and financial decisions on your behalf if you become unable to do so.
It is an unfortunate misconception that estate plans are only for the wealthy. Below are three reasons why everyone can benefit from an estate plan, regardless of income or assets.
Having an estate plan saves money and time.
Dying without a will is referred to as dying “intestate.” When this happens, state law will determine how your assets will be distributed, and who will distribute them. While the long, drawn-out probate process is taking place, your assets remain frozen. Probate, which involves sifting through the details of your estate, paying debts, and mountains of paperwork, can drag on for years. In addition to being time consuming, probate can be prohibitively expensive.
Fortunately, with proper estate planning, you can dramatically reduce the time and expenses associated with probate. In some cases, you can avoid the process entirely. At a minimum, you should create a will that specifically names an executor of your estate, and ensure that you have accurately named beneficiaries on your investment accounts.
Having an estate plan protects your children.
If you and your children’s other parent die while your children are still minors, who will raise them and care for them? Without a well-drafted estate plan, you are putting this decision in the hands of the probate court, which will typically appoint a grandparent or other family member as guardian.
In many cases, parents would prefer someone other than a family member to become their children’s guardian, such as a family friend. But if you don’t make these wishes clear, your minor children could end up in the wrong hands. Some children who are left without a surviving family member may be forced to enter the foster care system.
Having an estate plan protects your health and dignity.
With a durable power of attorney, you can name a trusted friend or family member to handle your financial and legal affairs if you become unable to do so on your own. With a healthcare proxy, you can name someone to make healthcare decisions on your behalf. Without these advance directives as part of your estate plan, the court may appoint someone to make decisions for you who is unfamiliar with your wishes.
Contact a Vermont Estate Planning Lawyer Today
Estate planning is not reserved for the rich. The benefits above can apply to nearly every one of us. If you have questions about wills, trusts, advance directives, or other aspects of estate planning, the skilled estate planning attorneys at Deppman Law PLC can help. Contact Benj or Lesley today for a confidential consultation and to learn more.
