Estate planning is often perceived as something that could be held off until later. This is especially true for younger people in Michigan who might not think there is a sense of urgency. However, people should be aware of the unexpected challenges in life and that radical changes can happen without warning. For those who are just starting out and have a growing family, an estate plan is a crucial aspect of being fully protected and taking care of loved ones. There are certain strategies that are specifically applicable to younger people who are new parents. Even people who are not yet parents can benefit from understanding these concerns.
Recent societal issues spark renewed interest in estate planning
Given the changes across the nation and throughout the world since early-2020, it is no surprise that estate planning is becoming more popular for people of all ages. It is not pleasant to think about mortality, but it can also serve as a catalyst to act. With a well-crafted estate plan, it goes beyond leaving bank accounts, real estate and other property to loved ones. It also details who will care for young children in case the parents are unable to or are gone. Wills are the most basic type of estate planning document, but trusts can also be effective.
The trust will set rules as to how assets are distributed when the person dies. If the rules are not followed, then the assets do not need to be distributed. An example is if there is a child with special needs. Stipulations can be inserted to ensure that child is cared for in a specific way. There can be stipulations about just about anything such as a loved one staying free of drugs or attending a university and getting a degree. Proper designations for insurance policies are also part of the process to make sure a spouse gets the proceeds of the estate. Those who already have estate plans may want to update them to reflect changed circumstances.
Ignoring the importance of estate planning is an avoidable misstep
There are understated parts of estate planning that frequently get pushed to the side, but must be thought about. That includes knowing where the estate plan is and keeping it in a secure place; reviewing and updating it; and choosing the right executor or trustee. As has been shown repeatedly over the past year-plus, the unexpected is an unavoidable part of life. Being prepared is a protective measure and should not be delayed or ignored. Having help with designing an estate plan is a vital step that should be taken as soon as possible.