Do I Really Need an Estate Plan?
It’s a common question. “Do I really need an estate plan?” Not surprisingly, many people feel that an estate plan is really just about their net worth and that their current net worth does not justify the time or expense of putting a plan in place for the future. Of course, delaying the planning process or failing to plan altogether may, in many cases, be detrimental to one’s family and business. Inaction or failing to plan effectively becomes a plan to fail.
You don’t need to have a summer cabin up north, the latest boat, a private art collection, or a collection of luxury cars to have an estate worthy of estate planning. If you own anything in your own name (as opposed to ownership through a trust), you have an estate. Although the term “estate” may frequently be associated with symbols of great wealth, for the purposes of estate planning, the term is much broader and covers a whole lot more.
What Constitutes An Estate?
Common possessions like your home, furniture, vehicles, boats, jewelry, gun collections, and anything else that you own in your own name, are all considered part of your estate. As such, even if estate planning focused only on assets (it does far more), estate planning is something that can offer tremendous benefits to virtually all families and businesses.
The answer to the question “I don’t have an estate. Do I really need an estate plan?” is
“You likely do have an estate; and Yes, you, your family, and your business would benefit from estate planning.”
An Estate Plan Does More Than Just Deciding Who Gets What
It is important to remember that estate planning covers more than just property and assets. The estate planning process also provides an excellent opportunity to plan for your future and will help you think about many important things that you may not have previously given much thought. What values do I want to pass on to my kids? Who do I want to continue operating my business? Who do I want to make critical medical decisions for me if I can’t make them for myself? What are my priorities and how do I want to spend my time later in life? These questions all fall within the purview of the estate planning process. Working through this process can have a tremendous impact on how you live the rest of your life and on the legacy that you ultimately create and leave behind.