There is a common misconception that estate planning is only for California’s richest residents. The fact of the matter is that having an estate plan in place is important for individuals and families who are not affluent. This type of plan consists of legal documents and provides detailed instructions on how you want your estate managed after your death.
According to Forbes, estate planning is an essential aspect of financial planning for anyone who has assets. Often when people think of an estate they have images of mansions, luxury cars, yachts, private jets and so forth. However, you do not have to have any of those things to have an estate. An estate includes any type of home, car or property that you own. Estates also include the following:
- Personal possessions
- Life insurance
- Checking accounts
- Savings accounts
An estate plan is suitable for anyone who owns anything regardless of its value. Additionally, estate planning protects the interests of those who depend on your income, financial resources and assets. It helps ensure your spouse, young children or other dependents are properly provided for after your death.
Estate planning gives you control over how you want your assets distributed among your beneficiaries. The plan usually consists of several important documents, such as a will, trust and financial power of attorney. Without this legal arrangement in place, the courts may have to make important financial decisions that can have a lasting impact on your loved ones.
Please note that the information provided is for educational purposes, and it is not legal advice.