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Why estate planning isn’t just for the wealthy (or very wealthy)

Estate planning is for anyone with assets

Why isn't estate planning limited only to the wealthy?
Why estate planning isn't just for the wealthy (or very wealthy) »

Are you one of those people who consider estate planning something mysterious that people only need to do if they are super rich?

Do you say to yourself: My situation is simple. You don’t need an “estate plan.”

You might also think: “My family will know what I want, so I don’t need to do anything.”

If this is you, you are not alone; Many of us think Estate planning is like other people’s thing needs to do. We think it’s for billionaires or people who have hundreds of millions in their investment accounts. But the truth is that estate planning is for anyone who wants to transfer their assets to their loved ones in an efficient and effective manner.

This article will help you understand why estate planning is more important than you think.

To show you why estate planning is not just for the wealthy, I will share with you the most important myths about estate planning. See if you connect. Ultimately, you should see that estate planning is available to everyone.

The top 6 myths about estate planning

While it is true that more wealthy people are doing estate planning, it is important to understand this Everyone can benefit from planning And to be proactive rather than reactive about estate planning, which includes what to do if you become incapacitated, even for a short time.

The presence of will is step In the right direction, but this is only one part of the process.

Estate planning involves reviewing your entire picture, including considering who will serve as your health care representative and who will make financial decisions on your behalf. Remember, a will only comes into effect after you die, and there are many stages in your life that you need to plan for.

Need to review Estate plan Every 3-5 years or less if you have a major life event such as marriage, divorce, move, or new addition to the family.

This is important because your life changes, and so do the rules and regulations. You want to make sure your current estate plan reflects this.

Estate planning includes what happens after death, and also includes strategies for while you are alive.

For example, naming who will act if you become incapacitated. There are many estate planning opportunities that can save you money and reduce the headache and stress that occurs if there is not a clear document detailing your wishes.

Many people are surprised to learn that once you become a legal adult, your parents will not automatically have authorization to make decisions on your behalf.

Also, people have a misconception that if something happens, your spouse can manage your affairs. The problem is that unless you have legally granted power, their hands can be tied. Additionally, different states and provinces have different rules about how your assets are distributed if you die intestate, and it may not be what you intended.

While creating an estate plan is more important at certain stages of life, we know that, too life happens, Even when we are young and healthy, things don’t always go the way we expect.

The top 6 myths about estate planning
Why estate planning isn't just for the wealthy (or very wealthy) »

Frequently asked questions about estate planning

Estate planning can save your family time and money because you are proactive rather than reactive.

Estate planning involves creating a clear plan of what you would like to happen if you can no longer make those decisions on your own. You can take advantage of planning strategies that can save you taxes and probate fees, not to mention all the potential conflicts and confusion about what you want if it’s not already in the plan.

Your estate plan should include several important documents to ensure your wishes are carried out and provide peace of mind.

  • A will It sets out how your assets will be distributed, and appoints an executor to manage your estate and guardians for any minor children.
  • A to delegate It gives someone the authority to make financial decisions on your behalf if you become incapacitated.
  • Documents details All of your recent beneficiary designations Make sure they reflect your desires, as these labels are often beyond your control.
  • A List of assets and liabilities By maintaining an up-to-date inventory, it helps your executor better understand your possessions and manage them efficiently.
  • A Deed of trustif necessary, can help manage your assets during your life and after your death, providing privacy and potentially avoiding probate.
  • A Health care agentalso known as a medical power of attorney, designates someone to make health care decisions on your behalf if you are unable to communicate your wishes.
  • A Living will Determines your preferences for medical treatment and end-of-life care, guiding health care providers and family members in making decisions.

How can I start?

Getting started with estate planning begins with taking a few simple steps:

  1. Evaluate your condition:
    Evaluate your assets, liabilities, and your family’s needs. Determine who should make financial and health care decisions if you are unable to do so.
  2. Gather essential documents:
    Gather financial account details, beneficiary designations, and existing legal documents such as wills or trusts. Find out when it’s time to use a trust for estate planning and see if it makes sense for you.
  3. Consultation of specialists:
    Work with a financial advisor, estate attorney, and tax expert to check all the estate planning boxes.
  4. Create a plan:
    Develop a customized estate plan that meets your goals and complies with local laws. Review it every 3-5 years or after major changes in your life.
Big family
Why estate planning isn't just for the wealthy (or very wealthy) »

Final thoughts

Estate planning isn’t just for the wealthy, it’s also for anyone who wants to ensure their wishes are met and their loved ones are protected.

It is more than just having a will; It is a comprehensive strategy that addresses the dynamics of your money, health, and family. Proactive planning can save time, money and stress while avoiding conflicts.

By including key documents such as a will, power of attorney, health care proxy, and living will, you create clarity and security for the future. Life is unpredictable, and having an up-to-date estate plan ensures that you are prepared for anything that comes your way. Don’t leave it to chance.

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About the author

Why estate planning isn't just for the wealthy (or very wealthy)
Why estate planning isn't just for the wealthy (or very wealthy) »

Tiffany Woodfield He is a financial coach, cross-border expert, and co-founder of SWAN Wealth based in Kelowna, BC. As a TEP Director and Associate Portfolio Manager, Tiffany has extensive experience working with successful professionals who want to leave a legacy and enjoy an adventurous, career-optional lifestyle. Tiffany combines extensive knowledge from her background as a financial professional with coaching and her passion for personal development to help her clients create a unique path that allows them to live their fullest potential. Tiffany has been a regular contributor to Bloomberg Television and has conducted interviews with national and international publications, including the Globe and Mail and Barron’s.

Why Estate Planning Isn’t Just for the Ultra-Wealthy

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