Estate Planning
Why do you need to plan for the future?
There are many reasons to consider putting your assets into revocable or irrevocable trust. Your financial advisor can explore those reasons with you. But whether you have substantial or moderate assets, it is always important to consider prudent estate planning, especially if you have an extended family, as many people do, nowadays. Often both spouses were married before and one or both have children from earlier relationships. It is important to plan what will happen to your assets after you pass.
Who will take care of your children from earlier relationships?
Today, both you and your spouse may believe that the survivor of the two of you can and will handle the assets according to your wishes. But many of trusts and estates related disputes arise because the surviving spouse changes her or his mind. If the entire estate plan is spelled out in writing, in a formal fashion, there is less room left for later misunderstandings, lapses of memory or interpretation of your wishes that might not be consistent with your actual intent.
Who will make the decisions on your behalf when you no longer can?
It is important to record your wishes providing guidance in the event you become incapacitated, i.e., are found incompetent to make decisions for yourself. While not everyone needs a will, everyone can certainly benefit from a living will and durable as well as mental health power of attorney. By the foresight of planning ahead, you can provide for guardianship and/or conservatorship not only for your minor children but also for yourself, in the event of incapacity. You can give instructions about the level of care you want administered to you and when to stop such care. You can also change your mind about any of these dispositions as often as you wish, so long as you document your most recent wishes.
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