You may have heard that most people have not written an estate plan. One of the reasons that they often give for this is that they don’t think they have enough assets. They see estate planning as something for the wealthy, perhaps assuming that anyone with a net worth under $1 million does not need a plan.
But is this true? No. It is a common myth. The truth is that estate planning is for everyone, and there are many benefits to making a plan, even if you don’t have a lot of assets.
Dividing sentimental assets
For example, you may still have assets that have sentimental value to your beneficiaries. These are very likely to cause disputes if you do not make an estate plan. By writing a will and specifying who should get the individual items, you help things go smoothly for your family.
Making medical decisions
Additionally, your estate plan can be used to make some medical decisions in advance. For instance, you could use an advance directive or a living will, telling healthcare providers about the treatment that you want. You could also use a medical power of attorney to legally give someone else the ability to work with your medical team.
More complex options
Finally, an estate plan gives you more advanced options to achieve unique goals. For instance, you don’t have to leave money to a beneficiary directly. You could put that money into a trust, and then the trust can specify how they’re allowed to use it.
These are just a few things to keep in mind when considering estate planning. Be sure you know what steps to take to draft and file your plan this year.