For most people, estate planning is the least of their priorities. They'd rather invest their time in planning other things instead of keeping their family secured. Although it isn't as fun as preparing for your future travels, neglecting to focus on estate planning would only risk everything you worked hard for several years.
Dealing with the loss of a parent can be emotionally and financially devastating. That's why it's crucial to settle your affairs even if you don't have a substantial IRA or an expensive home. But for someone who's still young, should you consider getting your family protected as early as now?
Life insurance can help.
When faced with a loss of a parent, it doesn't matter if both parents worked or there was only one parent. The family will experience the same level of grief and potential monetary crisis. So, aside from the bills that you need to manage, it's also essential that each parent has adequate life insurance if one of them passes away.
Having life insurance can help secure your family after your passing, giving them the financial security that they need. But for those who have a little extra, getting a whole life insurance policy is a better choice. That's because it combines both savings and insurance into one.
Establish an estate plan.
Having an estate plan will make it easier for you to allocate your properties, assets, as well as the custody of your kids. Failure to make one can give the court power to distribute your assets and provide guardianship for all your children.
An estate plan is composed of a will and beneficiary designations on both your life insurance and retirement savings. Every state has its estate requirement, so working with an estate attorney can help you make your estate plan.
Be open with your family.
Talking about death with your family is grim and often considered as taboo. But how will your surviving family know how to handle things if ever it happens? Communicating with your family is a practical choice instead of keeping it a secret. It would be best if you told them where you put essential documents in case tragedy strikes.
Also, always document your wishes. It's crucial, especially if you've chosen a person who'll serve as your child's guardian. You also need to ensure that they can quickly locate your financial account. Create a list of all your bank accounts as well as the financial institutions handling them. Although you can save the list on file, you must document your will on paper. Ensure that the people that you trust have access to your account as well as your passwords.
Part of preparing your family for the future is making sure that your assets are all in place if something happens. You need to organize your documents as well as your estate plan to make it easier for your family to handle the situation. Moving on to the next life is nothing but normal. So, preparing for it as early as now will keep your family secured and protected until they're ready to rebuild their lives.
