Good Financial Reads: Estate Planning: How To Care for Your Loved Ones When You’re Unable To

Have you heard about estate planning but have been putting it off or don’t think you need it? You’re not alone.

According to caring.com, 67% of Americans don’t have a will, and the most common reasons for not having one include “I haven’t gotten around to it” and “I don’t have enough assets to leave anyone”.

Read on to learn why estate planning isn’t just for the wealthy and goes far beyond simply creating a will.

So, what is an estate plan, how do you fund it, and make sure you know all of the pieces to get that plan in place? 

What is an Estate Plan?

When we think about an estate plan we think about the documents. Normally, these are documents like a Will, which says who you want to inherit assets when you pass away. Next is a trust, this gives more details for how you want assets to be passed on. And then there is a Power of Attorney (POA), which says who you want to make decisions for you. 

While people create trusts during their life, estate plans often include the creation of trusts at death. Knowing who you will put in charge of the trust is vital, including backup options.

You have to specifically name them in the documents. They will be responsible for carrying out the terms of the trust, making distributions, maintaining records, managing the assets, filing tax returns, and communicating with beneficiaries.