In many ways, estate planning is a misnomer, as it leads most people to believe it’s all about money and taxes. In reality, estate planning is really about protection – for you and your loved ones.
A recent article in The Examiner provides 7 reasons you need an estate plan – even if you only have $500 in the bank:
1. Health care. Defining how your medical needs will be handled in case you are unable to make those decisions for yourself and making a plan for long-term health care.
2. Avoiding probate. Having an estate plan allows you to avoid probate, saving your family from the expense and hassle of going to court.
3. Avoiding family feuds. Sentimental items often provoke more family fights than money.
4. Beneficiary forms. Making sure the right people are listed on beneficiary forms for IRAs, life insurance, retirement plans and annuities.
5. Dependents. Ensuring the care of dependents – children, grandchildren, an elderly parent or a special needs family member.
6. Asset management. Naming the right person to manage assets wisely for the benefit of heirs.
7. Business succession. If you own a business, you need a succession plan to determine what will happen to the business if something should happen to you.
For proper legal guidance in developing your estate plan, contact our Newport Beach law firm.