We talk a lot about being proactive and seeking out a consultation with an estate planning attorney so that your family is protected. While it is true that estate planning is clearly going to be more immediately relevant to you as you get older, it is actually important for people of all ages.
You never know what the future holds and nobody has a crystal ball. It is best to expect the best while being prepared for any and all eventualities. The time and effort that it takes to put an estate plan in place is minimal compared to the difficulties that your loved ones would be faced with if you were to pass away intestate and without the appropriate income replacement vehicles in place.
Though we do encourage people to take action, the ironic thing is that estate planning generally comes to you. The ideal income replacement vehicle is life insurance, and most people are offered life insurance when they get their first job that offers benefits. In fact, some level of coverage is usually paid for by the company that you work for and you are offered the opportunity to increase it at your own expense.
As you enter different phases of life your coverage must be reviewed. When you get married it is very likely that your spouse is depending on your income to maintain his or her standard of living. This can make it necessary to increase your coverage, and of course when you have children your level of responsibility once again increases and you will have to revisit the amount of coverage that you have.
Life insurance also can serve some other useful estate planning purposes. It can be utilized to balance inheritances, and life insurance is also the key to buy-sell agreements that are instrumental in small business succession planning for business partners.
Life insurance is an important component to most estate plans, and if you are interested in getting a more in-depth understanding consult with an experienced and qualified estate planning attorney.
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- No, Writing Your Will on a Napkin Isn’t Enough - November 28, 2023
