Unlock the Benefits Of Estate Planning For Your Family

Unless you’re never planning on getting injured or dying, the answer is “yes.” But why?  What exactly is estate planning? It is often defined as the process of arranging and preparing for the disposal of one's assets and wealth after death, but I would argue that it also includes planning for other contingencies prior to death as well.  Regardless of how your money and affairs are managed today, it’s going to change in the future, one way or another.

Many investors assume that estate planning is only necessary for the ultra-wealthy who have an incredibly complex balance sheet when, in reality, it’s for anyone who wants to make sure that:

• Their family is taken care of
• Uncle Sam doesn’t receive any more of their hard-earned dollars than is absolutely necessary
• They get to choose their children’s guardian rather than leaving it up to the State
• They can trust the person tasked with making medical decisions for them in the event of an emergency

There are 3 basic components of most plans and a 4th that is more common than you may think. 

Wills

A will is a legal document that outlines how a person's assets will be distributed after death. It includes instructions on the distribution of assets, naming an executor or personal representative, and any other important details related to the person's estate. Without a will, state law determines how assets will be distributed, which may not be aligned with the person's wishes. This is also where those who have minor children or other dependents may name a guardian of their choice in the event they themselves cannot continue to provide care.

Power of attorney

A power of attorney is a legal document that designates a person to manage the financial affairs of the person in case they become incapacitated or unable to make decisions. This person, known as the attorney-in-fact, can handle everything from paying bills to managing investments.

Health care directives

Health care directives are usually composed of a medical power of attorney and a living will, which outline the person's wishes for medical treatment in case of incapacity. It's important to have this document in place to ensure that your wishes are followed in case of an emergency or health crisis.

Trust

Out of all the basic building blocks of estate planning, the trust is the one most-often assumed to be unnecessary.  To a degree, that’s fair, because not everyone needs a trust – a statement I would not make about the previous three documents. However, just like estate planning, trusts are not reserved for the ultra-wealthy.  A trust is a legal arrangement in which a person transfers assets to a trustee (often themselves, as in the case of a Living Trust) to manage and distribute according to the person's instructions. Trusts can be used for a variety of purposes, including privacy, minimizing taxes, protecting assets from creditors, and providing for minor children or dependents.

Other common objectives of estate planning:

• If you’re a business owner, your plan should be coordinated with your Business Continuity Plan. 
• Helping individuals and families plan for long-term care, such as nursing home or assisted living expenses, which can be a significant financial burden for many people.

In summary, estate planning is a crucial process for anyone who wants to protect their assets and ensure that their legacy lives on in a meaningful way. It's important to work with an experienced estate planning attorney to create a plan that aligns with your wishes and provides peace of mind for the future. Don't wait until it's too late to start planning for the inevitable. If you have not done so, start the planning process today by reaching out to your advisor who can recommend good estate planning attorneys to choose from.

Provista Wealth Advisors in Greenville, SC, provides peace of mind through personalized asset management, expert estate planning, and retirement planning. Navigate your financial journey with confidence. Rest Assured, We Have A Plan. Give us a call at (864) 696-2410 or send us a message to schedule your free introduction meeting.