Unfortunately, there is a common misconception that only certain people should consider creating an estate plan. Most assume if they do not have a lot of assets, there is no need to draft a will or create trust funds. However, this is far from the truth. Estate planning is a critical process to ensure that you, your assets, and your loved ones are protected upon your passing. If you’re unsure if you should start this process, the following blog explores who should establish an estate plan and why it’s critical to enlist the assistance of Pennsylvania estate planning attorneys to guide you through this process.
Who should consider creating an estate plan?
Generally, any adult over 18 who has assets should consider drafting an estate plan. Though thinking about your own death can be morbid and upsetting, it’s important to consider what will happen if you do not have an estate plan.
When you pass away without a will, you are considered to have died “intestate.” Essentially, the state will take control over your assets and distribute them according to the pre-determined intestate laws of succession. This means that, depending on whether or not you have children, a spouse, living parents, and other relatives, your assets will be distributed in a certain manner. For example, if you have a spouse but no children, your spouse will inherit everything. If you have a spouse and children, your spouse will receive the first $30,000 of your estate and one-half, while your children receive the other half.
As such, your assets may not be distributed according to your wishes. For example, if you have an estranged child who you do not wish to leave assets to, passing away without a will guarantees they will receive a portion of your estate. Even if you have no family, you can still leave assets to your friends, loved ones, and charitable organizations you may want to support. If you have no family and do not create a will, the state will assume control of your entire estate.
What should be included in the plan?
Your estate plan is more than just a will. Though this is the foundational document that everyone should create, you may benefit from other documents.
One thing you should consider is creating an advance healthcare directive and appointing a medical power of attorney. Used in conjunction with one another, an advanced healthcare directive details the medical care you wish to receive in the event you become incapacitated and unable to express your wishes yourself. A power of attorney is an entity that you appoint to advocate on your behalf in these matters.
You may also want to create a trust fund, as this can help provide certain tax and other benefits to your loved ones. For example, if you have a loved one with special needs, creating a trust fund allows you to support them without disqualifying them for certain government benefits.
As you can see, you should start considering creating an estate plan if you have not done so already. Though this may seem overwhelming, the team at Friedman Schuman Layser is here to help. We understand that this can be a complicated process which is why we are ready to guide you through so you can achieve peace of mind for the future. Contact us today to learn more.
