What is Estate Planning?
Estate Planning is the act of arranging and planning one’s estate. This is done to properly manage and dispose of possessions on the estate during one’s life and after one’s life.
Estate planning is important, especially because it addresses one’s personal possessions, medical and financial decisions. However, many people fail at creating an estate plan. Whether it’s because they don’t know where to start or don’t want to think that far ahead; the truth is that planning one’s estate must be done. If you don’t make an estate plan someone else will make one for you, and it may not be to your liking.
Skip the drama and regret and read on to discover how important estate planning is and what you can do right now to prepare for your future.
Purpose & Benefits
Many people roll their eyes and groan because they assume that the process will be long and tedious. This is not necessarily true. With the right attorney, the process can be relatively painless. The truth is, estate planning is extremely important and serves a tremendous purpose by making sure your money goes to the right place, especially after you pass away.
Some people don’t want to think about estate planning because they don’t want to dwell on their morality. Though it is a difficult topic, it still needs to be discussed. This is especially true when considering your loved ones. Spouses and children are entitled to some sort of inheritance, but if your estate is not properly planned, you are leaving your loved ones at risk, with your possessions possibly falling into the wrong hands.
Money is a primary concern, but there are other factors to be considered. Your personal values and beliefs are also elements that may not be honored if you do not properly establish them in your estate plan. For example, if you have an adult child who was still living in your home, who will he turn to if you were to die suddenly? These are things that need to be thought about. This is not meant to scare you, but to prepare you.
You need to plan so that your money goes to the people you want it to go to rather than an attorney or business person. In order to do this properly, the best option is to seek out professional help. That’s where we come in!
Common Mistakes & How You Can Avoid Them
Believe it or not, one of the most common mistakes when estate planning is not fully understanding what is included in an estate. To help you out, here are some things that are considered to be part of an estate:
- Personal Property
- Life Insurance
- Checking & Savings Accounts
- Retirement Accounts
- Annuities
- Property
Many people don’t feel like they need an estate plan mainly because they don’t think they have a lot of possessions. The reality is, you probably have more than you think! We promise you that once you start going through your stuff, you will be surprised how much you actually possess. Don’t downplay what you have. Instead, protect it.
What Happens When Someone Dies Without a Will or Trust?
If you die without a will or a trust, you die “intestate”. This means that the responsibility of distributing possessions and estate now belongs to the probate court. In Tennessee, many people rely on the state to plan the estate, when, if that is the case, it runs the risk of falling into the wrong hands.
Don’t make the mistake of skipping out on doing your estate planning. Today is the day to make a change! Contact our office today and we can do all the hard work for you so you can rest at ease knowing that your future is protected.