One of the biggest misconceptions about estate planning is that it is only for the rich. Nothing could be further from the truth. Estate planning offers multiple advantages, even to people who have few assets. In other words, estate planning is for everyone. In this article, we examine four reasons that estate planning isn’t just for the rich.
#1: An Estate Plan Protects Your Family
First and foremost, you need an estate plan to protect your family—regardless of your income. There are many ways that an estate plan protects your family. For one, you can use an estate plan to determine what will happen should you ever become incapacitated. By making arrangements for incapacity, you relieve your loved ones of the burden of having to make tough decisions during a time of grief and stress. With an estate plan, you can also plan for the care of your minor child, an elderly parent, or someone who suffers from a disability.
#2: An Estate Plan Controls Your Finances
One of the biggest benefits of an estate plan is that it provides you with the ability to remain in full control of your finances. This is important whether you earn a moderate income or are a multimillionaire. In addition, the act of creating an estate plan can serve as incentive to begin saving for retirement. Finally, an estate plan allows you to dictate how and when your beneficiaries will receive an inheritance; this is especially important for minors or others who need assistance with managing their assets.
#3: An Estate Plan Reduces Risk
Another reason that everyone needs an estate plan is that it mitigates against future and current risks. For example, as noted above, an estate plan enables you to determine who will control your finances and make decisions on your behalf should you become incapacitated. An estate plan can also address who will make similar decisions after you pass away. By addressing these types of issues before they occur, you take this burden off your family.
#4: An Estate Plan Protects Your Privacy
Finally, if you value your privacy, you should strongly consider a trust-based estate plan. The reason for this is simple: if your estate goes through the probate process, which is mandatory if all you have in place is a last will and testament, then your probate information is public record. If you create a trust through the estate planning process, however, you avoid probate and maintain your privacy.
Contact a Michigan Estate Planning Attorney
As we explain above, everyone needs an estate plan. So, if you’re ready to begin the estate planning process, you should contact an experienced Michigan estate planning attorney for assistance. At Keating Law, PLC, attorney Thomas Keating will help you create an estate plan that will protect you and your family for years to come. With over 25 years of estate planning experience, Thomas Keating understands how to create an estate plan that is effective, efficient, and cost effective. Please contact us today to arrange a free consultation.