Aspects to consider when creating an estate plan

On Behalf of | Mar 17, 2020 | Estate Planning |

For many people in California, the idea of putting together an estate plan may appear overwhelming and unnecessary, especially if they are in a comfortable spot in their life. People who do not yet have children, have a stable job and are in good health may not recognize the value of creating an estate plan just yet.

However, even if people do not see themselves needing to rely on the support of an estate plan in the immediate future, their decision to be proactive about organizing their affairs may save them significant resources and stress in the future.

An estate plan covers a lot

It is true that an estate plan can address a lot of important areas of a person’s life. The Motley Fool warns that inadequate planning may result in a financial loss that can impact people on an individual and familial basis. To prevent this from happening, people should pay attention to the things in their life that are important and assess how they can protect those things.

People may consider discussing how they would like certain decisions to be made in regard to their finances and health should they become incapacitated. They should also consider the care and well-being of any dependents including children and pets. If they own a business, they will want to articulate how they would like business affairs to be dealt with following their death. Taxes, property and retirement benefits are other topics people may wish to address.

Keeping an estate plan relevant

Once people finalize their estate plan, they may feel a sense of protection and relief. However, U.S. News reminds people that they can modify their estate plan and they should if their life circumstances change. Significant life events including the birth of children, marriage or remarriage, divorce or the death of a family member may alter the function of an estate plan and should be addressed immediately to ensure the document stays relevant.