Comparing Estate Planning to Insurance

 Posted on May 31,2019 in Estate Planning

Even though there are numerous benefits to creating a will, studies show that only about 60 percent of Americans have established a will, trust, power of attorney, or other estate plans. Many people use misinformed excuses to justify not having estate plans. They may incorrectly think “I am not rich, so I do not need a will” or “I can wait until I am older or in poor health to create estate planning documents.”

Estate planning does require a person to face some uncomfortable inevitabilities and can be tedious, so it is understandable that many procrastinate on this important undertaking. However, waiting too long to think about estate planning may mean that very personal decisions regarding your property, heirs, and even your medical care could be left up to others.

Why You Need an Estate Plan Even If You Are Young and in Good Health

Anyone who drives a car on public roads must have auto insurance according to Illinois law. However, it is safe to assume that many people would have auto insurance even if it was not required by law. They know that car accidents happen across the country every day and that it is better to be safe than sorry. Generally, people understand how insurance protects them much better than how estate planning protects them. However, the two concepts are not entirely different.

Some estate planning documents are created just in case an unexpected tragedy was to occur. For example, estate planning allows young parents to pre-approve a guardian for their children in the event that they pass away before children are adults. Similarly, creating an advance medical directive gives you the ability to decide in advance what types of medical care you do and do not consent to if you became gravely ill, as well as to assign a trustworthy representative to make financial decisions on your behalf if you cannot do so yourself. These estate planning instruments are similar to car insurance or health insurance in that a very lucky person may never need to actually put these plans to use.

Other estate planning documents deal with certainties. No one can live forever, and putting a will or trust in place now guarantees your ability to make decisions about what happens to your assets and property after you pass away. Estate planning gives you the peace of mind that although you hope for the best, you have planned for the worst.

Contact an Arlington Heights Estate Planning Attorney

If you want to learn more about estate planning, contact an experienced Lombard, Illinois estate planning attorney at A. Traub & Associates. Call 630-426-0196 today to schedule a consultation with our team of dedicated professionals.

Sources:

https://www.aarp.org/money/investing/info-2017/half-of-adults-do-not-have-wills.html

https://www.forbes.com/sites/catherineschnaubelt/2018/09/13/6-reasons-why-you-need-an-estate-plan/