2. Who Needs an Estate Plan?

Here is part 2 my series entitled, Estate Planning – What You Need to Know.

Who Needs an Estate Plan?

If you have a family, a house or a business or you have assets you would like to pass down to certain people or charities, then you absolutely need an estate plan.

An estate plan will make sure there are enough funds to take care of your spouse and young children, often with life insurance, and it will name guardians to raise your young children if you and your spouse are no longer around.

An estate plan will make sure your hard-earned assets will stay in the family and will not be left for the state and federal government to tax and the court to distribute.

An estate plan will make sure your assets go to the people or charities you want to receive them.

An estate plan will include a strategy to manage your business if something happens to you.

An estate plan will make sure the person you want is authorized to manage your assets and affairs if you become incapacitated.

Next is part 3 – What if You Don’t Have an Estate Plan.

You Need Life Insurance to Protect Your Family

If you have young children, and you are not independently wealthy, you must get a big term life insurance policy.

If you died tomorrow, would your spouse and children be able to make ends meet comfortably, or would they have to scrape and claw their way?

If you have young children, chances are term life insurance will not cost you very much because you are relatively young and healthy. You should call your financial advisor and find out what it would cost to protect your family. I typically recommend both spouses get insurance for at least 7 times annual income.

Unfortunately, I’ve seen parents die in their thirties or forties. Families that had life insurance had no financial problems. Families that didn’t, had to face a huge struggle to make ends meet. Life insurance can’t bring mommy or daddy back, but it will eliminate the financial suffering.

When I give talks on estate planning, I tell the audience that parents with young children that do not have life insurance are committing parental malpractice. Yikes!

Hopefully you will buy a 20 year term life insurance policy and outlive the term. In which case, you will look back and say it was a bad investment. But unless you have super hero powers to see the future, it is a necessary investment and part of being a responsible parent and spouse.

DISCLAIMER. We do not sell life insurance. But we do care about you and your family.

Estate Planning is Not Complicated

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If you have a family, you need to protect it. It’s your job.

If you die, what happens to your spouse and children? The solution can be simple. An estate plan and life insurance. The estate plan usually involves a living trust and the life insurance can be a 20 year term policy. That will protect most families. It doesn’t have to be difficult, but it does have to be done. Don’t make it more complicated than it has to be.

Guardians. Of the people you know, who is the best one to raise your kids if needed, Hint – not some best case scenario person you haven’t met yet, but the best of the people you know. For good or bad, your choice is limited to the people you already know. Who is the best of those?  You can always change your selection. Better that you to choose, then have the court choose for you.

Life Insurance. If you are healthy, term life insurance can be surprisingly affordable. Talk to your insurance adviser and lock in a 20 year term policy.