Regardless of your income level, it’s important to have some sort of estate plan in place. This will give you a greater level of control over who gets your property if you’re incapacitated or after you pass. It will also give you a greater amount of control over who raises your kids in the event that you’re unable to do so.
An estate plan should include a will or trust
A will is a document that allows you to dictate who receives assets that are kept in your estate after you pass. It also allows you to name a guardian for your children. Similarly, a Trust makes it possible to dictate who gets your assets or who will raise a minor child if you cannot.
However, anything that is owned by the trust is considered to be outside of your estate, so it can pass to a beneficiary without the need for probate. Furthermore, trusts take effect as soon as they’re created, which means that they can be used to manage your affairs if you become incapacitated. Ultimately, this can be a powerful estate planning tool for those who want to build maximum flexibility into their plans.
Consider including a living will
A living will is a medical document that outlines the types of treatments you’d like to receive if you’re unable to speak for yourself. It may also be possible to designate a medical agent who will represent your interests if you cannot competently do so on your own.
An estate plan helps you maintain control over assets before and after your passing. If you fail to create a will or trust, there is a chance that the state will determine who gets your assets or who cares for your children.