A family lawyer gives you 7 reasons you need an estate plan—even if you have only $500 in the bank
1. Your health care. Defining how your medical needs will be addressed in case you cannot make health care decisions for yourself is a primary objective of having an estate plan. You also need to consider how you will meet the costs of long-term care. You need to name someone to make decisions for you and tell them how you want them made. This must be legally documented or the person you want caring for you cannot help without going to court first, as is the case with Amanda Bynes' parents.
2. Probate. Probate is an unnecessary, public, and often expensive court process that takes control out of your family's hands and puts that control in the hands of a judge who doesn't know you or what's important to you. A main focus of estate planning is keeping your family out of court, no matter what.
3. Family feuds. Family fights over how assets are divided and distributed are common when there is no estate plan and/or trusted advisor to guide family members. Sadly enough, these fights happen even when amounts of money are small OR even when there is no money at stake. Some of the biggest fights we've seen happen in storage units over sentimental items with no monetary value at all. If you don't want your family to fight, you should plan your estate ahead of time.
4. Beneficiary forms. You likely have several assets that cannot be passed along in a will alone. These include IRAs, life insurance, retirement plans, and annuities, all of which are governed by beneficiary forms that specify who is to receive the assets upon the death of an account holder. Completing these forms properly is estate planning. Completing these forms improperly creates the potential for a hugely disparate distribution and disgruntled beneficiaries.
5. Kids and parents. If you are currently responsible for the care of minor children, elderly parents, or a person who has special needs, you need a plan for the continuation of that care after you are gone.
6. Managing assets. Is your spouse or other family member capable of managing all your assets? If not, you will need to name someone who is capable of doing this now so your assets will be managed wisely for the benefit of your family in the future.
7. Business succession. If you own a business, you will need a succession plan to govern what happens to your ownership shares if something should happen to you. This is especially important if you are in business with a business partner, or you could end up in business with their spouse upon their passing, forcing a buyout when you can't afford it, or worse, a liquidation of the business.
Gerry Beyer addresses estate planning for college students
When a person turns 18, he or she is legally an adult and parents can no longer make decisions for their child without consent. Therefore, adult children should take certain actions to have a parent or agent make decisions for them in case of an emergency. Here are four documents college students should have to ensure they have protection should anything unexpected happens:Posted by Jill Fallon at September 9, 2013 9:55 AM | Permalink
Power of Attorney. This will give an agent the authority to make financial or legal decisions on their behalf.
Health Care Proxy. This will appoint someone to make medical and end-of-life decisions on their behalf.
HIPAA Release. This will allow a named person to talk to doctors and receive information concerning their health.
FERPA Release. This will allow a named person to receive information concerning their school performance