Estate Planning Basics: What Every Family Should Know

Estate planning is an important aspect of financial management that helps ensure assets are distributed according to an individual’s wishes. While estate plans vary, there are some key components to consider.

Wills and Trusts:
A will outlines how assets should be distributed, while a trust may provide additional control over when and how beneficiaries receive assets. The right choice depends on individual circumstances.

Beneficiary Designations:
Certain accounts, such as retirement plans and life insurance policies, allow for direct beneficiary designations. Keeping these updated may help ensure assets are transferred efficiently.

Power of Attorney & Healthcare Directives:
Estate plans often include documents that designate someone to make financial or medical decisions if the individual becomes unable to do so.

Estate planning is an ongoing process. Life events such as marriage, divorce, or the birth of a child may require updates to existing plans. Consulting with estate planning professionals can help ensure that documents remain aligned with current goals and legal requirements.