Estate planning allows you to prepare for any unexpected events that may occur in the future. Every person’s estate plan is unique and tailored to their specific goals and circumstances. For instance, a parent will prioritize the well-being and guardianship of their children. A business owner will focus on succession planning to ensure their enterprise thrives beyond their tenure. Singles might concentrate on philanthropic efforts, medical care decisions or distributing assets among friends and family members.
Your values and beliefs also play a pivotal role in your estate planning. You might have strong feelings about medical interventions at the end of life, which you can articulate in a living will. You might have a cause close to your heart that you wish to support through charitable giving. Your estate plan becomes a blueprint for expressing these values by ensuring the people you appoint to act on your behalf respect them.
What is the goal of your estate plan?
Before you can create an estate plan, you must know what exactly you want to happen to you and your estate in the case of incapacity or death. Once you identify the goal of your estate plan, you can personalize it. Here are some of the most common goals associated with estate planning:
- Protect and provide for your loved ones
- Protect and preserve your assets
- Protect your right to decide for yourself and to choose who will make decisions for you if the need arises
You might have multiple goals, and thankfully, a range of estate planning tools is available to help you meet each one effectively.
Incorporating the right tools to address your specific goals
You have many estate planning tools available, but it is essential to understand that each comes with its own set of rules and processes. A will can specify the distribution of your estate and guardianship arrangements for your children. Trusts can be set up to manage your assets on behalf of your beneficiaries according to your specified terms. Powers of attorney can designate individuals to make decisions on your behalf if you are unable to do so yourself.
By knowing what you want to achieve with your estate plan, you can develop a comprehensive strategy that covers all your bases.
