Before you pass on, it’s recommended that you create an estate plan. Estate plans ensure your wishes get carried out the way you want them to. They can also guarantee financial stability for chosen heirs.
If you’re new to the estate planning process, you likely have questions about it. Below are some common questions and answers.
1. What is the ideal age to begin estate planning?
Some people put off estate planning because they’re young, healthy and possess few assets. While there’s no specific age to establish an estate plan, it’s best to do it as soon as possible since you could become incapacitated at any time in your life.
If you have children or experience any other life changes, you can update your plan accordingly.
2. Is it better to create a will or a trust?
It’s up to up whether you want to create a will or trust. However, a trust grants you more privacy since it doesn’t go through probate. Wills are more appropriate for matters that trusts don’t cover, such as establishing guardians for minor children.
3. I’m not wealthy. Should I bother with creating an estate plan?
You don’t have to be wealthy to establish an estate plan. Besides, about half of American adults who have a will make between $40,000 and $99,000 per year.
4. What if I have no family?
Though you’re not obligated to make an estate plan, you can if you want to avoid probate court. Even if you don’t have a family of your own, you can appoint other relatives or close friends or charities as beneficiaries.
If you have more questions about estate planning, consider seeking experienced legal guidance.