Why is Estate Planning Important?

Did you know? 67% of Americans don’t have a basic will in place. Estate planning is often thought of as something only older people need to worry about, but it’s crucial for everyone, regardless of age. Let’s explore why estate planning is so important and how it can benefit you and your loved ones.

Estate planning involves making decisions about what will happen to your assets - such as money, property, and personal belongings - after you pass away. It also includes making arrangements for your care if you become unable to make decisions for yourself due to illness or injury. Key components of an estate plan include a will, power of attorney, and healthcare directives.

Why is Estate Planning Important for Everyone?

1. Protecting Your Loved Ones. One of the main reasons for estate planning is to ensure that your loved ones are taken care of after you’re gone. Without a clear plan, your family might face legal battles or confusion about your wishes. An estate plan provides clear instructions, which can help reduce stress and conflict during a difficult time.
2. Managing Your Assets. Estate planning allows you to decide who will receive your assets. This is important because, without a plan, state laws will determine how your assets are distributed, which might not align with your wishes. By planning ahead, you can ensure that your belongings go to the people or causes you care about most.
3. Healthcare Decisions. If you become seriously ill or injured and can’t make decisions for yourself, an estate plan can include healthcare directives that outline your wishes for medical treatment. This ensures that your preferences are respected and can relieve your family from making tough decisions on your behalf.
4. Financial Security. Estate planning can help minimize taxes and legal fees, ensuring that more of your assets go to your beneficiaries. This is especially important for those with significant assets, but even modest estates can benefit from careful planning.

Why Start Estate Planning Early?

1. Unexpected Events. Life is unpredictable, and accidents or illnesses can happen at any age. Having an estate plan in place means you’re prepared for the unexpected, providing peace of mind for you and your family.
2. Building Good Habits. Starting estate planning early helps you develop good financial habits and encourages you to think about your long-term goals. It also allows you to make adjustments to your plan as your life circumstances change.
3. Avoiding Intestate Succession. If you pass away without a will, your estate will be distributed according to state laws, which may not reflect your wishes. By creating an estate plan, you can avoid intestate succession and ensure that your assets are distributed according to your preferences.
4. Protecting Minor Children. If you have young children, estate planning allows you to designate guardians who will care for them if something happens to you. This is crucial for ensuring that your children are raised by people you trust and in a manner that aligns with your values.
5. Peace of Mind. You’ll never have to worry about rushing to put documents in order if there’s a sudden event of any kind.

Estate planning is a vital process that provides numerous benefits, regardless of your age. It helps protect your loved ones, manage your assets, ensure your healthcare wishes are respected, and provide financial security. Starting early can prepare you for the unexpected and give you peace of mind.

PSECU members have exclusive access to estate planning services through Legal Karma*. With a variety of packages at prices just for PSECU members, as well as free, live phone/chat support through Legal Karma, you can ensure your will, trust, powers of attorney, and more are in order quickly and affordably. Don’t wait - begin your estate planning today to safeguard your future and the future of those you care about. Learn more and get started today!

*PSECU has contracted with Legal Karma to provide estate planning products and services to PSECU members. PSECU does not warrant any service or product offered by third parties, including Legal Karma. PSECU recommends that you consult and seek the advice of a qualified and licensed financial, tax, or legal professional if you have questions about estate planning. Legal Karma is not a law firm and are not attorneys. The use of any Legal Karma product and/or service is not intended to be a substitution for an attorney or law firm. Legal Karma does not provide legal advice or legal services. Any information provided is for informational purposes only and shall not be construed as legal advice. Your use of Legal Karma’s Site and/or Applications does not and will not create an attorney-client relationship between you and Legal Karma and does not constitute legal advice. Legal Karma's estate products and services are available nationwide.