Do Modest Estates Need Estate Planning?
The other day, I was out to a birthday dinner for a friend. I met a married couple who asked me, "Since its just us, we don't have any children, we don't own a home, and we don't have many assets, we don't need estate planning, right?"
Unfortunately, that is an incorrect notion -- yet, a popular one. Estate planning is not just for the wealthy. The right estate plan can help minimize stress on your family when you pass, by preserving and providing distribution to your intended beneficiaries. It also minimizes the expenses of settling the estate.
Another critical function of estate planning is the preparation of living wills, medical powers of attorney, and general powers of attorney, which are just as important to those with wealth as to those with modest estates. Estate planning documents such as these, provide guidance to doctors and financial institutions regarding your medical and health care needs in the event of an accident, incapacity, or incurable disease.