When you are planning for old age and beyond, you'll be making changes to your estate plan. Your estate plan is a group of important legal documents that dictate what you'd like to see happen if you are unable to make decisions for yourself or if you pass away.
Everyone needs an estate plan, whether you're a young 20-something-year-old or marching over the hill. Estate planning early in life is a good idea, but no matter how old you are, you always have the option to start.
Estate planning is an important part of growing older. As you age, you collect more assets and become wealthier. As a result, you may have many assets by the time you reach retirement (or sooner).
A lot of people who do not have estate plans in place will tell you that they just have not gotten around to it yet. They feel like they're too young to worry about it. They plan to take care of it when they get older.
Many individuals draft wills once they accumulate assets or when they marry, get divorced or have kids. Others may simply have a power of attorney drawn up to allow someone else to make health care or financial decisions on their behalf. Few engage in business succession planning, though.
Your estate plan is designed to help distribute your assets to your heirs and anyone else you choose as a beneficiary. You can typically choose almost anyone you want: friends, family, business partners, charities, etc.
Oftentimes, when you hear about estate planning being discussed in the media, you hear how individuals are seeking to reduce the tax obligations that their estate and beneficiaries are left paying. A recent TD Wealth study suggests that taxes shouldn't be your biggest concern though, but instead the prospect of relatives contesting your will should be.
While many have been conditioned to think that estate planning is only for the wealthy, it's not. It's actually for anyone who wants to take ownership of what happens to them or their assets if they become incapacitated or die. People of all means can benefit from drafting an estate plan.
It's not easy to talk about end of life plans with your significant other or even your adult children. No one wants to think about death. However, it is important so you are prepared and your family is not left in the lurch. One of the most important parts of planning your estate is picking a power of attorney. Following are some tips for making the selection.
Putting together an estate plan in New York is much more important than many people might think. There are quite a few issues that an estate plan can tackle, all of which are vital to your success in life and the safety of your dependents.