Although there is no legal requirement to create an estate plan, neglecting to do so can result in a variety of problems. Not only can this impact you while living, but it can also do the same to your loved ones upon your death.
Fortunately, once you understand the benefits of creating an estate plan, you’re more likely to do so. Here are five reasons why it’s so important:
- Avoid or plan for probate: If you want your estate to avoid probate, you’ll create a trust as opposed to relying solely on a will. In the event that you opt to use a will as your primary estate planning tool, it’s critical to name an executor who can see the probate process through from start to finish.
- Avoid trouble: When you pass on without an estate plan, there’s a much greater chance of a fight among your family. You don’t want to consider this possibility, so put it to rest with a comprehensive estate plan.
- Protect minor children: If you have children under the age of 18, you can name a guardian in your estate plan. This person has the legal right to raise your children should you pass on before they reach legal age.
- Incapacity planning: There is more to an estate plan than determining who gets what upon your death. You can also use it to protect yourself in the event of incapacitation. For instance, if you’re unable to make your own medical decisions as the result of a serious illness or injury, it’s nice to know that the right person will step in and do so for you.
- Peace of mind: It’s extremely stressful to live without an estate plan, as you’ll always have this hanging over your head. Once you have a solid plan in place, it’s easier to feel confident about what will happen in the future.
With so many reasons to create and maintain an estate plan, you shouldn’t put this off any longer. Even if you have a plan in place, you should review it regularly with the idea of making changes as necessary.
Visit our website and read our past blog posts for more information and advice pertaining to all aspects of estate planning in Michigan.