What Is an Estate Plan, and Why Do You Need One?

 Posted on July 14, 2024 in Estate Planning

You may have heard the term "estate plan" without being sure what it means, or you might think only the elderly or wealthy need to have one. The fact is, everyone who has children or assets needs an estate plan. If you do not make your wishes known while you can, someone else will make them once you are gone.

Although some projects are suitable for DIY, estate planning is not one of them. Planning your estate is best done with the help of an experienced lawyer.

What Is Estate Planning?

Your estate includes all the possessions and assets you accumulate through life, such as real estate, cars, stocks, bank accounts, and personal items. Estate planning lets you:

• Decide how you want those assets distributed after your death

• Preserve the value of your assets

• Minimize tax burdens for you and your beneficiaries

• Designate someone who can act on your behalf if you become incapacitated

• Make detailed plans for your minor or special needs children

Wills can accomplish some of those things, but an estate plan is more comprehensive than a will. In addition to drafting a will, your estate planning attorney may suggest setting up trusts, living wills, guardianships, or powers of attorney.

At A. Traub & Associates, we will get to know you and your specific circumstances, needs, and goals. That way, we can help you determine the best solutions.

Why Do You Need an Estate Plan?

Without an estate plan or a will, the courts or the state may decide what happens to your property. If you have minor or special-needs children, those entities may decide who will care for them. Many times, courts do not make the same decisions as you would.

To retain control of who will care for your children and how your estate will be divided, your estate planning lawyer will likely recommend several actions suitable for your individual circumstances.

Your estate plan also protects your children and other family members. It can:

• Reduce or eliminate family arguments about inheritances and your wishes

• Establish your desires for healthcare issues

• Help to avoid probate in some instances

• Reduce inheritance or estate taxes

Unfortunately, only 32 percent of Americans have an estate plan. If you have children or assets, it is not too early to think about estate planning.

When Should You Update Your Estate Plan?

There are several times when you should update your estate plan to reflect your current assets and wishes. These include:

• Having or adopting a child

• Buying a new home

• Getting married or divorced

• Moving to a new state

• The death of your executors or trustees

Major financial changes, buying or selling a business, and other significant life events are additional reasons to contact your estate planning lawyer for an update.

Contact an Experienced DuPage County, IL Estate Planning Attorney

Do not leave the decision about how to distribute your assets or who will care for your children to someone else. Take the first step toward protecting yourself and your family by scheduling a consultation with a competent Lombard, IL estate planning lawyer from A. Traub & Associates. Call us at 630-426-0196 today.