Estate planning is always wise, and life is unpredictable. About 40,000 people die in car accidents every year, and none of them anticipated that happening at the beginning of the year. The goal of estate planning should always be to get it done in advance so that the plan is ready if something unfortunate and unexpected does happen.
There are many different types of businesses in the United States, and small businesses -- the most common type -- tend to fall into one of three broad categories. These are owner-dependent, multigenerational or marketable. Let's take a moment to consider the first two.
Estate planning is very important, as mistakes can have a negative impact on your family. Unfortunately, people still make some avoidable mistakes, often because they simply don't realize it at the time. To help you avoid this potential pitfall, let's look at one of the biggest mistakes: Failing to update the will.
One question that the court may ask when determining the validity of a will is if the person who did the estate planning possessed the testamentary capacity to do so. It's very important to understand what this means and how it can impact an estate plan.
Say that you want to set up a trust for a grandchild so that they can pay for their education. It's a wise use of your money, and creating that trust can be part of your estate planning.
Say you pass away in a car accident, along with your spouse. That's why you're doing your estate planning after all -- to make sure you're ready for the unexpected.
Most people put off estate planning. In fact, most people don't have a will.
Here's what people assume, based on the traditional model, is going to happen when someone does their estate planning: They'll pay off the mortgage, retire, live in the home without payments until they pass away and then leave the home to their heirs debt-free.
It's easy to think that estate planning is all about you or all about your financial assets. While it does start with these things, it's actually all about your family. It may have a bigger impact on them than you realize.
A Do Not Resuscitate (DNR) order tells medical professionals that you do not want them to utilize any aggressive measures to save your life. Medical care itself is fine, but if you pass away, you want them to stop short of attempting to bring you back. This can be an important part of your estate planning, along with documents like a health care advance directive.