Everyone has an estate, even people who think they don’t. Because you have an estate, it’s important to learn about estate planning. Creating a plan for handling your estate after your passing will make financial matters much easier for your loved ones. Keep reading to see some of the key elements involved in estate planning.
What is Estate Planning?
The word “estate” simply refers to a person’s possessions. This can include houses and other real estate, automobiles, bank accounts, furniture, clothing, and even your pets. When you pass away, you’ll want to leave behind some sort of guide that outlines how you want your possessions divided. Estate planning is the process used to create this guide! When you go through the estate planning process, you protect and help your loved ones in the future.
What Elements are Included?
Life insurance plays an important role in the estate planning process. If you are married, have children, or plan on having children in the future, life insurance is one of the most important investments you can make. Your estate plan should also include a will, which is the actual document that states how your estate should be handled after your passing. Estate planning also helps you plan for medical complications with a durable power of attorney, which gives a specified individual the right to handle your legal affairs and finances if you become incapacitated.
When Should You Start Planning?
It’s never too early to think about estate planning. Many people hesitate to start planning because they think they are too young or don’t own enough possessions, but there are no age or wealth requirements for creating an estate plan. Working with a financial advisor will help you obtain the documents you need to create an estate plan that covers all of your possessions as well as any other requests you have for handling your passing.
Are you ready to learn more? You can get answers to your questions when you contact Financial Directions, LLC! We specialize in retirement planning, estate planning, and other financial needs in Tucson. Give us a call at (520) 408-7777 for more information.