Estate planning means making plans for everything you own, commonly known as your estate, to be transferred, shared, given, or divided up between loved ones or trusted acquaintances after you pass away or become unable to think for yourself.
Basically, your estate is everything you call your own such as: bank accounts, jewelry, vehicles, households, real estate, retirement plans, investments, etc. The process of estate planning also involves the inheritance of estates to beneficiaries and the payment of estate taxes.
There are typically three MAIN goals to estate planning which include:
A lot of people believe they are either too young or it’s too soon to start estate planning. This is something that should be started when someone becomes a legal adult (18), is in good health and state of mind, and has people who would be affected immediately by your passing.
In case of ill-timed disability: All of your estates and how you will be cared for is decided by a court appointee. Your family will not be able to decide for you.
In case of unfortunate death: This is where those probate laws come back into play. Without a plan, your assets will be decided based on the probate laws in your area. As a married couple with children, your family can receive a cut, but it might only be a small amount of what you would have originally given them. With minor children, the court will govern their share of estates and in case both parents pass away, they will also select a guardian at their choice even if you had someone in mind.