It is a common misconception that you have to have a huge house, tons of assets, or multiple vehicles to do estate planning. Reasons for estate planning have nothing to do with how many assets you have or how much money is in your bank account. Consider some of these common reasons why everyone should do estate planning.
Select Someone to Manage Your Affairs if You are Incapacitated
Who would watch over your belongings if you were incapacitated? Would you want a family member to oversee your healthcare and finances or would you rather a friend? Estate planning addresses these questions so that in the event you do become incapacitated, the courts know who to have managed your estate.
Protecting Your Children
If you have children, you need to provide for them even after you pass away. By having an estate plan done you can ensure your children are taken care of financially and have a suitable guardian if they are under the age of 18.
Protecting Your Estate from Creditors and Lawsuits
When you pass away, creditors will want to be paid. In order to do so they can sue your estate and try to claim a portion of it to pay off your balances. With estate planning you can prevent creditors from taking away assets from your loved ones and ensure your debts are taken care of correctly.