What is an Estate Plan and who needs one?

What is an Estate Plan?

An estate plan is a collection of documents that specify how you want your money and other assets distributed, making it easier for your loved ones to handle your affairs during a time of grief. In addition, an estate plan can:

1. Identify someone you trust to make decisions for you if you become incapacitated.
2. Specify who will care for your minor children if you're unable to do so. 
3. Minimize estate taxes and other transfer taxes. 
4. Help avoid the costs, publicity, and delays of probate, the court-supervised process used to value your estate, settle any debts, pay taxes, and transfer assets to your heirs. 

Who Needs an Estate Plan?

You do! If you’re young and single, you may need only a few relatively simple items, such as beneficiary designations and medical and financial powers of attorney. If you have children, you need a will to name a guardian. If you have substantial wealth, you may need one or more trusts to help control how your assets are taxed, managed, and distributed.