Illinois Estate Planning and Elder Law Blog
There are a number of milestones associated with young adulthood – such as landing your first job with a 401k, opening a savings account, owning a car, or buying your first home – that mean that you have an estate. An estate refers to your possessions, including tangible personal property (your home, car, furniture, jewelry) as well as bank accounts, investments, pension, and life insurance policies. If you do have an estate, it is essential to also create an estate plan. Estate plans aren’t just for those with large “estates” and a lot of wealth. Having an estate plan can ensure that your possessions will be handled how you wish should you become incapacitated or pass away.
What is an Estate Plan and Why is it Needed?
An estate plan is a set of legal documents that you can use to outline your wishes for the management and distribution of your assets upon your death. You can also use estate planning documents to communicate who you want to carry out your wishes in the case of your death or incapacity. Without an estate plan, the court could choose someone you do not want to manage your estate, and your possessions could end up going to individuals you do not wish to have them.
While in a time of grief and high stress, family members might also get into more arguments leading to possible litigation over your estate if there are no clear instructions for managing and distributing your assets. Creating your estate plan gives you control, security, and greater peace of mind that you are providing protection for your loved ones and for the assets you will leave behind for them.
Finally, having an estate plan can also help out when it comes to probate, the court-supervised process with the purpose of valuing your estate, settling any debts you have, paying taxes, and distributing your assets to your beneficiaries. The probate process may cost more time and money and may also leave your assets in legal limbo for an extended period of time without an estate plan.
In the next post, I will write about what documents are needed for an estate plan.
For help with your estate plan, contact us at Wilson and Wilson Estate Planning and Elder Law, LLC at 708-482-7090.
https://www.dbllawyers.com/the-importance-of-estate-planning-for-young-adults/