Estate planning is essential for everyone, regardless of age or wealth, but it becomes especially crucial for young families who are just starting to accumulate wealth and have a growing family. Here are some key steps and considerations for beginners:
Start with a Will: A Will is a legal document that outlines how you want your assets distributed after your death. Through a Will, you can ensure that your property and assets pass on to your chosen beneficiaries, and NOT those dictated by law. Even if you do not own a home yet, setting up a Will means a home purchased in the future will pass to the beneficiaries listed in your most current Will. You can nominate legal guardians for minor children or loved ones with special needs, ensuring they're cared for by someone you trust.
Consider a Trust: Revocable Living Trusts offer more control over how your assets are distributed and can provide protection from public Probate Court records. A trust can be especially useful if you have minor children, as it allows you to specify how and when they receive their inheritance, for example at age 25 or upon graduation from trade school or college. During your lifetime, you can easily change your Revocable Living Trust to match your changing circumstances.
Complete an Advance Directive and Financial Power of Attorney: An advance directive, also known as a healthcare directive, specifies your wishes for medical care if you become unable to communicate them yourself. A financial power of attorney grants this individual the authority to make decisions on your behalf, such as paying bills, managing investments, and handling legal matters. Designate someone you trust to handle your financial and legal affairs if you become incapacitated
Consult Professionals: Major life events such as marriage, divorce, birth of children, or significant changes in assets should prompt a review of your plan to ensure it still aligns with your wishes. An estate planning attorney and a financial advisor can help you navigate the complexities of estate planning and ensure your plan is comprehensive and effective.
Remember, estate planning is not just about passing on your assets—it is also about protecting your loved ones and ensuring your wishes are carried out. Starting early and regularly updating your plan as your circumstances change will help provide peace of mind for you and your family.
If you need help protecting your money and loved ones in the event of death or disability, call us at 301-696-0567 or self-schedule online at lenaclarklegal.com.
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