4 No-Nonsense Reasons to Create an Estate Plan

We’ve said it before and we will say it again: most people need an estate plan. There’s a misconception out there that only the mega-wealthy need to worry about estate planning, and we’ve done our best to combat it. In that spirit, below are four no-nonsense reasons an estate plan is beneficial for anyone that cares passionately about charitable causes, wants their family taken care of, and wants a say in how they are taken care of late in life.

1.  Define Care for Yourself

One obvious reason to create an estate plan is to set in stone how you will be cared for if you experience a period of debilitation or incapacity. An estate plan will allow you to name a power of attorney and a healthcare proxy and create a living will.

2.  Create Financial Security for Loved Ones

Without a will, state laws will determine who has the right to your assets after you are gone. There are many cases where distant relatives are tracked down – even to other countries – and given an inheritance even though the deceased wanted the assets to go to someone else. The problem? They didn’t have a will. A will gives you the power to say who gets what, plain and simple.

3.  Name Guardians

Do you have minor children? When you create an estate plan, you can make a written arrangements for their care. No matter how well your family knows your plans for your minor children, legal guardianship is determined by the state. If you want to entrust someone with taking care of your minor children, you can name their guardians when you create an estate plan.

4.  Name Beneficiaries

Many people name their designated beneficiaries in their retirement accounts and insurance policies without giving it too much thought. Life events – marriages, births, deaths, etc. – often change priorities. Are your beneficiaries up to date? And it doesn’t just need to be people that you name as beneficiaries. If you are passionate about certain charitable causes, you can name one of them as a beneficiary too.

Need to Create an Estate Plan?

Cohen & Burnett have provided the premier estate planning and tax services to the Washington, D.C. area for more than 25 years. We invite you to visit our homepage today and connect with one of our estate planning attorneys.

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