When it comes to estate planning, do you have your ducks in a row? Even if you have all the proper documentation in place, you may be missing an important piece of the puzzle if you don’t have a wealth transfer plan.

Estate Plans

Estate planning documents are the best way to ensure your assets are distributed according to your wishes when you die. When you pass away without a will or trust in place, state law will determine who receives your assets. Unfortunately, this may not be in accordance with what you would have preferred. When you record your wishes in a legal document, however, you get to choose exactly who benefits from your estate.

Another reason to have an estate plan is that, without one, your family will be left with some or all of the following:

“All we have to decide is what to do with the time that is given to us.” This quote, taken from the Lord of the Rings novels by J.R.R. Tolkien comes when the main character, Frodo Baggins, is faced with a daunting task of leading his close companions on a perilous task to save the world as they knew it. While this quote can have many deep meanings, it reminds me of the importance of planning for the unexpected. Frodo, unsure of what was on the horizon, was reminded by his companion Gandalf that while we are unsure of the future, we have the power right now to decide what to do with the time that we do have. Growing up, I pictured estate planning as the rather dreary process of establishing a will that ultimately provided instructions as to the final disposition of one’s estate, or everything one owns. But when I was finally exposed to the topic of Estate Planning in my academic studies and throughout my preparation for the CFP exam, then I truly understood its deep significance and how the estate planning process encompasses so much more than I initially imagined. Even now, as a recent college graduate without dependents, I understand that while I may not “need” to have an estate plan prepared any time soon, the amazing benefits and peace of mind it can provide in the present-day and in the future make it worth the effort. Below are a few reasons why beginning to think about, prepare, or even update your estate plan NOW can both provide peace of mind in directing even more of what will happen upon your death or incapacity, and also ensure that your goals and passions while living can be achieved after death.