My blog focuses on Financial Literacy/Money. One of the keys to wealth accumulation is passing it on. Some people have plans for this while many do not. The following contributed post is entitled, How To Get Stated With Estate Planning.
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What comes to mind when you think of estate planning? Is it something only the wealthy do, or perhaps something you believe is unnecessary to consider?
According to Financial Sense, a staggering 56% of Americans recognize the importance of estate planning, yet only 33% have taken the crucial step of documenting their end-of-life plans. Even more concerning, as revealed by a Trust & Will survey, only 31% have a basic will in place. This underlines the critical need for understanding and implementing estate planning.
Whether you don’t think you need to have a plan for your estate in the event of your death or you’ve simply not gotten around to it, these basic tips can help you get started to get something solid and legally binding in place.
Create A Will
A will is the cornerstone of a comprehensive estate plan. It lets you specify who will inherit your assets, ensuring your wishes are fulfilled. Without a will, your assets may not be distributed as you would have wanted. By having a will, you can rest assured that your loved ones will be taken care of according to your wishes.
You need to be of sound mind to write a will, so it’s best to have it witnessed and notarized to give it additional legality and not left too late, especially in the face of a life-altering health diagnosis.
Power of Attorney
Designated power of attorney gives another person legal authority to manage your finances or make decisions for you. The person you give power of attorney to needs to be someone you trust, and it is an irrevocable directive that enables them to make decisions if you become incapacitated for any reason.
There are different types of powers of attorney, with financial or health care being the most common. Appointing a person as soon as possible can ward off confusion or court intervention in emergency situations.
Set up a healthcare directive
A healthcare directive, also known as a living will, allows you to outline your medical preferences if you cannot communicate for yourself. Your healthcare directive can include instructions about life support, resuscitation, organ donations, and more. This allows you to share your wishes so that those in charge of making healthcare decisions on your behalf know your wishes and what you want.
A living trust
If you have significant assets, a revocable living trust can be a smart addition to your will. A trust like this can help avoid probate, offer privacy, and ensure a smoother transition of property to beneficiaries. Trusts can also provide for children or individuals with special needs over time, and they should be something everybody considers if this is applicable to their lives.
Explore alternative options
Traditional estate planning isn’t the only route available to people today. Suppose you’re looking for a more personal or purpose-driven estate planning approach. In that case, there are organizations such as Karmic Legacies that offer unique options for you to consider. Companies like Karmic Legacies offer you an option to have your legacy live on once you have passed. You can leave property that can help others and help you create a lasting effect longer after your death, or for past life healing for others to help them move forward, or for those who are unsure of who to leave property to, or don’t have anyone to leave it to.
You can preserve your property as a way that helps others at a time in their lives when they need it most, meaning that you can continue to give and have an impact on the world around you.
