Estate Planning 101
Have questions about estate planning? You're not alone. Below are answers to some of the most common questions Emily hears, from what estate planning actually is to which tools might fit your family. Think of it as a starting point to help you feel more confident and prepared before your first conversation with Emily.
What is “estate planning”?
Estate planning is simply deciding ahead of time what happens to you, your family, and your belongings if you pass away or can't make decisions for yourself. It usually includes a will or trust that says who receives your assets, powers of attorney that name someone you trust to handle your finances and healthcare decisions if you can't, and, for parents of young children, naming who would raise your kids. It's not just for the wealthy or the elderly. It's for anyone who wants their wishes known and wants to make things easier for the people they love.
Who needs an estate plan?
Estate planning isn't just for the wealthy or the elderly. It's worth thinking about if you:
Have children, especially minor children
Are married, recently divorced, or in a blended family
Own a home or other property
Have savings, retirement accounts, or life insurance
Care for a loved one with special needs
Want someone you trust making decisions for you if you can't
Are thinking about long-term care for yourself or a parent
Have a plan that's more than 10 years old or was made before a big life change
If any of these sound like you, it may be a good time to learn your options.
What happens if I don’t have an estate plan?
If you don't have an estate plan, Tennessee has one for you, and this is true no matter how much or how little you own. State law decides who receives your property, and that may not match what you would have chosen. A court may also decide who raises your minor children and who manages their money until they're grown. If you become unable to make decisions for yourself, your family may have to go to court to get the authority to handle your finances or healthcare. And your loved ones may face a longer, more expensive probate process at an already hard time. Estate planning isn't about the size of your bank account. It's about making these choices yourself, so the people you love know exactly what you wanted.
What is usually in every estate plan?
Every plan is different, but most estate plans include a few core pieces:
A will or trust that says who receives your property and who will oversee and manage your estate
A financial power of attorney that names someone you trust to handle your money and property if you can't
A healthcare power of attorney that names someone to make medical decisions for you if you're unable to
A living will (advance directive) that shares your wishes for end-of-life care
A guardian for minor children if you have kids under 18
The right mix depends on your family, your property, and your goals. That's what the first meeting is for: learning how each piece works so you can decide what fits you.