Why Do I Need an Estate Plan if I Don't Have an Estate?

I get this question all the time!

An Estate is what you own, however much or little it may be. It includes your “real” property (real estate), personal property (your stuff: cars, jewelry, collections, grandma’s china boxed up in the attic), and intangible property (bank accounts, investments, royalties).

An Estate Plan is your instructions for how your Estate will be managed and distributed. Your instructions may be in the form of a Last Will & Testament, a Trust, Powers of Attorney, Advance Directives or some combination of those documents. An Estate Plan can be simple or complex, depending upon what you want to accomplish with it – which might have much more to do with your family structure than the size of your bank account.

One of the most important parts of the Estate Plan for families with one or more children is deciding who will care for your children if something happens to both parents. It’s a scary thought, but it’s a choice you will want to make for yourself, not leave to a probate judge.

Many people incorrectly think that an Estate Plan is only used once you have passed away. Actually, a well drafted plan is flexible enough to manage multiple possible situations, such as,

• While you are living but temporarily unavailable or unable to manage your affairs;

• While you are living but permanently unable to manage your affairs;

• When you and your spouse are both unable to manage your affairs;

• Immediately after you pass away; and

• Many years after you pass away.

A good Estate Plan will include documents that deal with concerns other than money and property, such as medical directives, guardianship designations, final disposition instructions and organ donation instructions.

Working with an attorney who has experience in estate planning will ensure that you have the tools you need to manage during your lifetime, and for your family to manage after you are no longer able to manage on your own, and after you are gone.  You will sleep better once you have a plan in place!