Although many people may understand the importance of having a will, many have not taken the steps necessary to write one up. Along with a will, there are important estate planning decisions that one should consider.
No matter what someone’s age, it is beneficial to sit down and make plans for the unknown future.
According to FindLaw, younger people benefit from estate planning in that a will outlines where to distribute property. This is especially true for couples who live together because, without a will, the property will more than likely not go to the unmarried partner.
When a couple has a child, this is definitely the time to write up a will and designate a guardian. In the rare event that both parents die, having a named guardian prevents family fights and the court from having to make the decision.
When there are children, especially if one spouse stays home, it is also smart to consider life insurance.
Once someone has a significant amount of assets, it is time to start thinking about how to avoid probate and reduce estate taxes. There are numerous avenues one can take, depending on the situation.
Medical care decisions
As one begins to age, the Mayo Clinic discusses estate planning options to make sure one stays in control of medical care decisions. A living will outlines what treatments one would want or not want to help sustain life or control pain. A healthcare directive also gives instructions for medical care if one is incapacitated, and it can also name a power of attorney to make the important decisions.