Unexpected times can happen any moment
One area that is particularly critical to get right is estate preparation and the protection of your loved ones from the unexpected. Proper estate preparation is an act of love and responsibility to those you care about.
Why is estate preparation so critical?
- It documents your wishes and helps ensure that they are carried out when you are no longer able to look after your affairs.
- It helps protect the financial stability of your loved ones and support your life priorities.
- It helps minimize the taxes, expenses, and legal hassle involved with transferring assets to heirs.
Do I really need estate preparation if I have beneficiaries on my accounts?
Beneficiary provisions are a valuable tool for reducing the expense and time associated with transferring wealth; however, they do not replace proper estate preparation. I believe that the process of preparing your estate is critical to protecting your family and future financial affairs. I have also found that estate preparations offer an opportunity to explore your life priorities and discuss your thoughts with your loved ones.
Many Americans put off estate preparation because they view it as morbid or depressing. I prefer to treat it as preparing for life and protecting your family from the unexpected. Though you cannot control the future, these preparations help you focus on what you can control and empower you to care for your loved ones long after you’re gone.
Check out our educational article 5 most common gaps in estate plans.