Many people disregard the importance of estate planning, mistakenly believing it’s only necessary for wealthy individuals. The truth is, almost everyone can benefit from having a plan, regardless of your assets — and like insurance and investments, should be part of a solid financial portfolio.

Estate planning helps ensure that your wishes are followed regarding your assets if you become incapacitated or pass away. Your estate plan can:

• Provide for beneficiaries: you can designate who will receive your house, bank accounts, or other assets. Without a plan, state laws will determine how your property is divided.
• Designate a guardian for children: If you have minor children, you can name a legal guardian to care for them. Without this, a court decides which can result in a lengthy, expensive, and stressful legal process for your family.
• Help avoid family conflict: A clear, legally binding estate plan can prevent disagreements and emotional distress among family members over your assets.

In addition to family considerations, your estate plan can:

• Minimize taxes and legal costs: Proper planning can reduce or eliminate inheritance and estate taxes, as well as the high legal fees associated with probate.
• Avoid the probate process: A well-structured plan can help your beneficiaries receive assets without going through a long, expensive court-supervised process. It also keeps your financial matters private.
• Manage business succession: If you own a business, an estate plan can outline the future ownership and management, ensuring a smooth transition.

What about you? An estate plan can:

• Manage your care if you become incapacitated: Documents such as a medical power of attorney and a living will allow you to appoint someone to make medical decisions for you and specify your preferences for end-of-life care.
• Appoint a financial power of attorney: You can designate an agent to manage your financial affairs if you become unable to do so yourself — and not leave it up to someone else.
• Provide peace of mind: Knowing that your preferences are documented and your loved ones are protected provides a great deal of comfort and security for you and your family.

Best of all, an estate plan does not need to be overly complicated. Cinfed members can complete an online estate plan through an agreement with Trust & Will for a 20% discount.

Estate planning is not just for the wealthy — it’s a critical step for anyone who wants to ensure that their assets are protected and that their loved ones are cared for in the future. Make sure it’s part of your overall financial plan.