There is sometimes the perception that estate planning is something only the rich need to address. In fact, it does not matter how much or how little the individual owns. The fact remains that some planning is necessary to ensure those assets are passed on to someone when the individual passes away. When taking those first steps toward making plans, there are some basics to keep in mind. Here are a few examples to consider.
Basic Legal Documents
Even if everything the individual owns is in the bank and in an apartment, there is still the need to prepare a last will and testament. This document will serve as the basis for all estate planning. The individual has the opportunity to decide who gets what, and under what circumstances. Choosing to not prepare a will means that someone else, likely a government agency, will end up making the decisions.
Along with a last will and testament, taking the time to prepare medical and legal powers of attorney are also important. Should the individual become unable to manage financial affairs, it helps if an authorized party can step in and take care of things until that person can once again manage the estate. This is particularly important for people who are not married and do not have any close relatives who can step in and keep things going for the necessary period of time.
Generating Wealth for Retirement
Another aspect of the planning focuses on building wealth for the retirement years. Rather than relying on a pension from an employer or government benefits to make ends meet, it pays to set up and build various streams of revenue that will provide a reasonable amount of income. Having funds set aside to help with medical emergencies is also a wise move. A professional planner can help the client set goals and move toward meeting them in a structured manner.
For those who are ready to move forward with their planning, visit Thompsonanddeveny.com and arrange to speak with a professional today. The process will not be as difficult as many people think. Taking the time to make those basic plans will pay off in the years to come.
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