Estate planning isn't just for the elderly or rich. You might think of estate planning as something older people do—not 20- or 30- somethings who are just starting out in their careers. In fact, a recent survey by Caring.com found that even though three-quarters of adults know that a will is important, only 40% actually have one.
Unsurprisingly, older Americans have wills in place at a much higher rate than younger people. While only 21% of millennials have made a will, 66% of Americans 65 or older have completed the process. Most of us like to think that we’ll live to a ripe old age, but the fact is that it often doesn’t work out that way. Accidents and illnesses can happen at any age. Being as prepared as possible for the unexpected helps to protect your loved ones from legal hassles and unanticipated expenses.
Most of the survey respondents who didn’t have a will in place said it was because they just hadn’t gotten around to it, but nearly a quarter said they didn’t have enough assets to leave to anyone. This is an important misunderstanding, however; if you own any amount of assets—even if it’s just the car you drive or a modest life insurance policy—a will is an important tool for avoiding unnecessary hassle and expense in the event that your life comes to an end earlier than you expect. Also remember that even if you don’t have much to pass on now, the will you put in place today can protect assets you gain in the future.
Depending on your individual circumstances, a number of other documents should be included as part of an estate plan to protect your loved ones and communicate your wishes.
If your estate planning needs are simple, you don’t necessarily have to hire a professional to get key documents in place. A number of free online tools are available to help create simple wills and powers of attorney. If your estate is more complex, however, it’s best to schedule time with a professional. Whichever route you choose, don’t leave your estate plan to chance.
At Boelman Shaw Tax & Financial Planning, our dual focus allows us to take a more holistic approach to our client’s financial needs. We can help you find tax-advantageous ways to provide financial security for yourself, your family, and your heirs.
Tax and accounting services provided through Boelman Shaw & Company, LLC. Advisory services provided through BSC Capital Partners, LLC a state of Iowa registered investment advisor.