Estate planning is associated with several myths. And one of them is that one has to be rich to have a will. It’s not uncommon for people to postpone estate planning because they believe their estate is not “big enough.”
So, how wealthy should one be to draft an estate plan?
Everyone needs an estate plan
Every adult should have an estate plan regardless of their level of wealth, as it does more than distribute assets. Firstly, estate planning allows you to name a guardian for your minor kid(s). The party you choose will take care of your child when you can’t – they will ensure your child’s needs are met until they become an adult.
Further, although you may believe your assets are few, they can result in conflicts among your loved ones if you die without a will. However, with a will, you can designate your assets based on your criteria.
An estate plan also allows you to state health care wishes if you become incapacitated. You can specify the medical treatments that can be administered and those that should be avoided. You can even state when a medical treatment should be withdrawn. You will appoint a health care agent to make decisions that align with your desires.
Additionally, when you draft an estate plan, you can appoint an executor to protect your estate and distribute assets to beneficiaries. Without an estate plan, the court may pass the distribution power to heirs, which can result in conflicts.
Estate planning is not only for people with high net-worth. You can benefit from drafting one despite the amount of property you currently possess. Besides, you can update your estate plan when circumstances in your life change. Learn more about estate planning earlier to maximize its benefits.
