There are many reasons Pennsylvania residents postpone drafting as estate plan. For some, they do not like thinking about their death while they are young and healthy. Others associate wills, healthcare directives and other estate planning documents with decisions made past retirement age.
Finally, if one does not own much, they are under the impression that an estate plan will not serve them.
No matter the reason one uses to delay the creation of an estate plan, it is important to understand that it is never too early to draft one. Additionally, individuals and couples do not need to own much or have notable retirement accounts to have an estate plan.
Estate planning for those with little assets
It is true that many chose to draft a will to ensure that their property and assets pass to the correct heirs. However, one does not have to have much or even valuable assets and property to include them in a will.
By creating an estate plan, you are essentially helping you relatives when it is time to administer your estate. This means that everything you own can have a designation. This includes the physical property you own, real estate property, whatever money you have in a bank account, investments, retirement accounts and prized possession.
Net worth doesn’t matter
Because many associate the need of creating an estate plan with their net worth, many do not have any type of estate planning document drafted. In fact, 2 out of 3 Americans do not have an estate plan because they are under the impression it is for those that are wealthy. Nonetheless, net worth does not matter when it comes to an estate plan.
Whether you are broke or wealthy, there are three major takeaways when it comes to having an estate plan in place. First, it creates a legally binding decision when it comes to asset distribution. Second, it can minimize estate tax burdens for your heirs. Finally, it creates a peace of mind because your financial affairs are in order.
Young or old, rich or poor, with or without a current estate plan, it is important to consider creating or updating your estate plan.