Many people mistakenly believe that “estate planning” is an activity in which only older wealthy people need to engage, but that is simply not the case. Everyone needs some level of estate planning whether it involves the execution of basic estate planning documents (such as a simple Will, a Power of Attorney and an Advance Directive) or the implementation of more sophisticated planning strategies.
It does not have to be a difficult task to prepare and make some basic decisions for an estate plan, according to MarketWatch which offered some tips in "Prepare financially for your death, no matter how young you are."
The tips include:
- Get medical and financial powers of attorney. These documents will enable someone you designate to handle things and make important decisions, if you are incapacitated and unable to do so.
- Get a Will. If your finances are not complicated, you might not need a complicated estate plan, but you should at least have a Will.
- Get life insurance if anyone is financially dependent on you so they will be taken care of if you pass away.
- Put some money aside for a funeral, so your family does not have to pay for it.
- Keep your financial records organized so someone else can figure things out in an emergency. Let someone know where to find everything.
- As things change in your life, and your finances get more complicated, and bank accounts get larger, review and update your estate plan to reflect your current situation.
Reference: MarketWatch (Jan. 31, 2017) "Prepare financially for your death, no matter how young you are."