Most people recognize that estate plans serve a vital purpose – for other people at least. The 2024 Wills Survey from Caring.com found that only 32% of Americans have a will. Although some people may be putting off estate planning simply because they would rather think about other things, 40% of Americans say they don’t think they have enough assets to create a will.
This is a common misconception, and it’s one that could cause unnecessary stress for your loved ones. If you think you don’t need an estate plan, keep reading to see if you fall into one of these groups of people.
1. People with young children.
If you have young children, an estate plan is an important way of providing for them. Even if you’re healthy, a car accident, brain aneurysm or other unexpected event could change that in a second. Thankfully, that’s probably unlikely – but part of being a responsible parent is planning for the worst-case scenarios.
In addition to divvying up assets, your will can name the person you would like to be your child’s guardian. Other estate planning tools, including life insurance and trusts, can take care of the financial aspects. You can also use estate planning to ensure that special items go to your children, for example, if you want your wedding dress to go to your daughter and your engagement ring to go to your son.
2. People with adult dependents.
If you provide care or financial support for an adult, estate planning can help you continue to provide for this individual no matter what. For example, if you have an adult child with disabilities who depends on you, or if you support a brother or sister, consider what would happen if you were to die unexpectedly.
Just as you can nominate a guardian for a child in your will, you can nominate a guardian or conservator for an adult dependent in your will. You can also set up a life insurance policy or trust to continue providing financial support.
3. People with pets.
When a pet owner dies, the pet often ends up in a shelter. This can be very traumatic for the pet, and it’s typically not what the pet owner would have wanted. Unfortunately, many people don’t plan ahead for their pets.
You can take care of your pets by creating an estate plan that includes them. Just as with human dependents, you can name a guardian and establish a life insurance policy and/or trust to cover expenses. Another option is to enroll in a program like the Oregon Humane Society’s Friends Forever Program.
4. People with family heirlooms or other coveted belongings.
You might not have a mansion or millions in savings, but that doesn’t mean you don’t have anything of value. Even assets of purely sentimental value deserve attention. In fact, splitting money can be much easier than splitting heirlooms, artwork or other valuables.
Disputes over who gets what can become ugly. Estate planning for family heirlooms is a smart way to avoid conflict. It also allows you to decide what happens to your most cherished belongings.
5. People who want to control what happens if you’re incapacitated.
If you were injured in a car crash and entered a vegetative state with no real hope of recovery, would you want to be kept hooked up to machines so you could live as long as possible? Or would you want to be allowed to pass on so your loved ones could begin the healing process and avoid massive medical bills? If you have a strong opinion on this, you need to make your wishes clear in an advanced directive.
An advanced directive outlines a person’s wishes for medical care if they ever become incapacitated, and it can name a healthcare representative to make decisions on their behalf. This is an important part of estate planning, and it’s one that every adult should consider.
Estate Planning Isn’t Just About Assets
The rich and famous need estate plans – and a lack of adequate estate planning often leads to bitter conflicts and legal dramas – but estate planning is not just for the wealthy. That’s because estate planning isn’t just about assets. It’s about taking control of what happens to your belongings, your loved ones and even yourself. All adults can benefit from this, so estate planning is for everyone.
Do you need help crafting your estate plan? Contact Skinner Law.