What Is Estate Planning?

I’m not a billionaire, why do I need Estate Planning? Estate Planning isn’t just for the wealthy, it is an important part of life that often gets postponed or overlooked entirely, because you think you have time or you don’t think you’re ‘rich’ enough to do estate planning, but that is far from the case. No matter how many or how large your assets and possessions are, you can benefit from estate planning. 

Estate planning is simply making arrangements to manage and distribute your assets after your death or if you find yourself incapacitated in some way and are unable to do it yourself. Estate planning can include:

• A will

This is a legal document that specifies how you want your assets distributed after your death. It allows you to name beneficiaries and designate guardians for any minor children. 

• Trusts

Trusts can be used to avoid probate, provide for minor children or disabled family members, and minimize estate taxes. 

• Power of Attorney

A Power of Attorney gives someone the authority to make financial or medical decisions on your behalf if you are unable to do it yourself. A Power of Attorney ensures that your wishes are followed. 

• Healthcare Directives

Healthcare directives such as a living will or health care proxy give an outline of your desires when it comes to medical treatment if you are unable to communicate those desires yourself. 

• Beneficiary Designations

Retirement accounts, life insurance policies, bank accounts often allow for beneficiaries. 

Estate Planning can help protect your loved ones, minimize taxes and expenses, avoid probate, preserve family harmony by addressing these, sometimes uncomfortable, questions and concerns. 

It is important to review your estate planning regularly to ensure that everything in it is still accurate and still aligns with your goals.

While estate planning can seem overwhelming and something that you’d rather not think about, it doesn’t have to be an albatross around your neck. If you are ready to get started planning for your future, Irvine Legal can help you with your estate planning.