Studies have found that the majority of Americans do not have an estate plan. Researchers asked them why they hadn’t made a plan yet, and one response they got was that people just did not believe they had enough assets to need an estate plan. They assumed that estate planning was only for the wealthy or the rich, and they figured they wouldn’t have to do it themselves.
But is this actually true? It is not. Almost everyone can benefit from estate planning. It certainly can be more complex for the wealthy, but there are estate planning tools that can help anyone, in any income bracket.
Making medical decisions
For example, you can use a medical power of attorney in your estate plan to give someone else the ability to make medical decisions on your behalf if you become incapacitated. This can be a very valuable legal tool that helps you get the care that you want and also limits disputes between family members.
Another option is to use a living will, which is a type of advance directive that allows you to leave instructions for your medical team. If you’re incapacitated, they turn to your estate plan to find out what type of treatment you want.
Sentimental family heirlooms
Additionally, even if the assets that you own are not worth very much from a financial perspective, remember that they may have great sentimental value to your family members. Beneficiaries often get into disputes when they can’t decide how to split up these sentimental items. Drafting an estate plan that makes your wishes clear helps things go smoothly for your family and ensures that the beneficiaries get the assets you intended.
As you can see, estate planning can be very helpful, so be sure you know what steps to take to draft your plan.