Whether you’re a young professional who just landed your first full-time job or a stay-at-home parent to three children, understanding the importance of planning for the future is critical. Unfortunately, many put off creating an estate plan as they assume they don’t have enough assets to warrant establishing these documents or they believe this is only necessary for older adults. However, this is far from the truth. If you’re interested in learning who should create an estate plan with the help of a Medina, Ohio estate planning lawyer, the following blog explores what you should know about these important matters.
Who Needs to Create an Estate Plan?
There is a common misconception that only the wealthy or elderly should create an estate plan, which is far from reality. It’s important for everyone over 18 with assets to establish their plan. Unfortunately, many aren’t sure what happens if you pass away without a plan.
When you pass away without a Will or other estate planning document, it is considered an “intestate” passing, meaning you did not have a plan. As such, the state will assume control of your assets. Instead of giving assets to Beneficiaries, the state will divide assets according to the Intestate Line of Succession based on your living relatives. This means someone you may not want to receive assets, like an estranged child, could be entitled to a portion of your estate.
What Should I Include?
Creating an estate plan is much more involved than simply writing your wishes down on paper and signing it. Generally, your Will serves as the foundational document, as it explains how you would like your assets distributed upon your passing. Additionally, a Will allows you to name a guardian for any minor children in your care.
Your estate plan can also include a Living Will and Medical Power of Attorney. Your Living Will explains your medical wishes in the event you become incapacitated and unable to communicate. In conjunction, appointing a Medical Power of Attorney allows you to choose someone to help make decisions on your behalf based on the wishes you’ve previously described. They can advocate for certain care on your behalf.
Finally, you may want to consider creating a Trust Fund, based on your circumstances. For example, if you have children who may not be able to handle assets from a Will in the event you pass away or a relative with special needs who would be disqualified from government benefits if they received an inheritance, creating a Trust Fund can help evade these issues.
Creating an estate plan can be a complex process so it’s in your best interest to discuss your circumstances with an experienced attorney who can help you decide the best course of action for your needs. At Krause Law, we understand that you may feel overwhelmed by how many options there are. That is why our team is ready to help you explore your options so you can make a plan that reflects your needs. Contact us today to learn more.