Many Americans agree that estate planning is essential, but only 32% of people have the basics of an estate plan – namely a will – in place.
However, estate planning is more than designating how your assets should be distributed or who should be the beneficiary of life insurance policies. Instead, a comprehensive plan includes a range of important decisions, from how estate taxes and debts will be handled to the guardianship of minors and pets.
An expert resource like Saddock Advisory can serve as your estate planning guide now and well into the future, as your assets and wishes will evolve and change in the decades to come. In the meantime, here’s an overview of the basics of estate planning, and why it’s never too early to start the process.
What is Estate Planning?
Estate planning essentially encompasses the different tasks and guidelines for how an individual’s affairs will be handled in the event of their death or if they are in a situation when they can no longer take care of these actions on their own. Essential elements of estate planning include the inheritance of assets to heirs, outlining plans for taxes, debts, and other financial situations, detailing guardianship specifics, and designating a point person or point people to take care of all the above wishes.
Why Do I Need an Estate Plan?
An estate plan serves a range of purposes. For one thing, it protects you in case of incapacitation due to medical or other reasons. Additionally, it ensures that your family members and loved ones are taken care of and that your legacy is preserved. Regardless of whether you want to ensure your heirs are provided for or make sure a sizable portion of your assets are left to your favorite charity, an estate plan covers all your bases and leaves a complete guideline for how your wishes should be carried out.
Without an estate plan, there is no guarantee that an individual’s wishes will be adhered to, and there may be confusion and extra work (or taxes) that burdens your loved ones.
When to Start Estate Planning
One of the most common questions when it comes to estate planning is “when should I start?” and the answer is as soon as possible. While you certainly don’t have to dwell on the unexpected, it’s never too early to have a plan in place to protect yourself and your loved ones.
Generally speaking, estate planning is not necessarily a lengthy or daunting process, especially if you have an expert like Saddock Advisory to guide the way. As a result, it’s a small thing you can do right now to ensure protection for everyone in your inner circle, especially yourself.
What if I Don’t Have Enough Assets for an Estate Plan?
One of the most cited reasons folks don’t proactively create an estate plan is because they believe they don’t have enough assets to leave behind, which is very seldom true. An estate isn’t just the funds in your savings account or significant assets like your home. It also includes your life insurance, your retirement plans, pensions, many collected items, and much more, and it can add up when it’s all tallied together.
In addition, it’s imperative to remember that an estate isn’t just a list of how your assets should be distributed to your heirs. It also outlines your preferences for funeral arrangements and names an executor to handle your affairs. It can also mitigate unforeseen hurdles like estate taxes by setting up financially beneficial alternatives, like trust accounts.
Effective Estate Planning for Asset Protection and Tax Reduction with Saddock Advisory
Another reason why people delay estate planning is because they are not sure where to start. Do you need an attorney or a financial advisor? Do you need an executor or other professionals involved in the process?
The good news is that all these questions can be answered or handled by reaching out to an experienced and client-focused resource like Saddock Advisory.
At Saddock Advisory, we can help guide you through every step of the estate planning process.By partnering with us, we can take the burden off your shoulders when it comes to accounting for all the many multi-pronged details that estate planning entails.
Having a concrete plan for yourself and your loved ones is easily within reach, but it takes an expert to lead the way. Connect with us today to start a discussion about estate planning and take the first steps. With Saddock Advisory on your side, you can ensure peace of mind for everyone in your world today and for many decades to come.
