January 07, 2022
What is estate planning? Who needs it?
Estate planning is essential if you want to keep your assets in the right hands. It is a legal process that helps you decide how your estate will be distributed on your demise and how you can preserve, protect, and enhance them while you are still living. It is a daunting task to think of one’s death, but you cannot dismiss the responsibilities out of fear. Understanding your duties towards your loved ones and acting upon those to protect their future is critical for everyone’s happiness.
Let us see what estate planning is and who needs it!
What is Estate Planning?
Simply put, an estate plan is a legal document stating your chosen heirs. But technically, it is much more than just a will. It includes multiple components that help design a perfect financial plan for you while you are alive and the distribution of your assets after your demise. The five primary elements of an estate plan are the last will, trust, power of attorney, beneficiary designations, and health care directives.
Why You Need Estate Planning?
The estate plan dictates how your finances will be handled in case of your incapacitation. You also get to choose a health care proxy who will take care of you as per your instructions in the estate plan in case of disabilities. Most importantly, you will decide who gets to be your beneficiary and who isn’t liable to any benefits from your estate. If you pass away without an estate plan, your estate will come under the control of probate court and will be distributed according to the state’s probate laws. This means you lose all the powers over your estate.
Who Needs Estate Planning?
Estate planning is not only for the riches. You can create an effective estate plan with what you have. An estate plan helps-
- Plan for the future
- Choose guardians for your minor children
- Determine caretakers for your elderly family members
- Select your executor
- Protect your estate from federal estate taxes
- Avoid the lengthy probate process
- Increase your assets
- Give instructions about your health wishes and choose a health care proxy
About Castle Wealth Group
Contact Castle Wealth Group for all your estate planning needs. We build a perfect strategy for your retirement, including income planning, investment planning, tax planning, health care planning, and legacy planning. Visit our website or call us at 844.885.4200 or email us for expert financial advice.