Anyone who owns an asset has an estate. Many people often underestimate the actual value of their estate. Your estate includes holdings such as life insurance values, investments, and real estate.
Estate planning is a very important component to help you manage your financial affairs in the event you are unable to do so. This plan can also help the distribution of your assets after death. When you do not have an estate plan the state will dictate a plan for you when you pass. This plan could be one that you or your beneficiaries may not like and come with a lot of cost and time for legally distributing your estate. Having an estate plan will help distribute your assets with ease and in a cost effective manner to your designated beneficiaries. This could also help reduce the emotional burden to your family.
An estate plan can involve wills, durable power of attorney, medical power of attorney, trusts, and living wills.
Estate planning attorneys can provide the service helping people carry out their estate plans to set up trusts and draft wills. However, financial planners do the ground work by coordinating your estate plan with your overall financial plan. Financial planners can refer qualified estate planning attorneys when needed, or work with your current estate planning attorney.