Insurance is something that most all of us get “in case” something happens- a car accident, house fire, flooding, broken bone, etc. In most cases, it is rare that you are using any or all of your insurance policies at any point in time or even during a given year. But, insurance can save us a lot of money and heartache over the expenses that we might incur.
Unlike a tree falling on your car, death is certain. Having life insurance is a wonderful way to pay for debts and take care of your family after you pass away. Since death is a given, think about estate and asset protection plans as another type of insurance you can put in place for you and your family.
Everyone over the age of 18 should have at least a General Durable Power of Attorney (GDPOA) and Health Care Power of Attorney (HCPOA). These documents will allow someone you trust to take care of your finances, real property, and health care decisions if you (or they) are unwilling to do so. The cost of not having these in place, but needing to appoint someone, say in the form of a Guardianship, can be very expensive, time consuming and you may not like the person or the terms the Judge orders you to have. The cost of having your own GDPOA and HCPOA can far outweigh the cost of not having them.
If you have children you would like to protect or assets that you would like to distribute, adding a Will or a Trust to your estate plan can reduce the costs associated with fighting over the kids and the assets, but it will bring a lot of peace of mind to those who you leave behind. You can nominate a guardian for your children as well as state who you definitely don’t want involved. You can distribute your assets and personal affects in a straightforward way, which helps to eliminate family fights, hard feelings and the cost of litigation.
As for the cost, just like any insurance plan, you get what you pay for so make sure you are aware of what is and isn’t covered in your documents.
Once an estate plan is completed, there is a huge sense of relief and accomplishment. Not only will you feel good for checking that box off your to-do list, but your family will appreciate it. Since death is a certainty, creating an estate plan is another way to help insure that those you love are provided for financially as well as emotionally.
Written by ELTC Law Group
