Although you can't prevent every catastrophic scenario, you can better manage the consequences by figuring out what you want to happen if you become incapacitated or pass away. Who should manage your money when you can't? What are your preferences for health care? Who will inherit your property?
A comprehensive estate plan includes multiple legal documents that lay out your instructions for medical professionals, the financial institutions managing your money, and the courts that will distribute your assets after your death. "An estate plan ensures your wishes are honored when you're no longer there or able to enforce them," says Joe Fresard, an attorney with Simasko Law in Mount Clements, Mich.
If you don't put together an estate plan, the government and the courts will make these decisions on your behalf, following state law. Your loved ones will be required to apply for legal permission to manage your money and make your health care decisions, creating extra work during a highly stressful time.
"If you don't have everything prepared, you're leaving your loved ones with a mess and leaving yourself unprotected," says Mary Kate D'Souza, chief legal officer at Gentreo, a digital estate-planning service. For example, the court may pick someone you don't trust to make decisions on your behalf. Your assets could go to people you haven't spoken to in years.
Despite the importance of establishing an estate plan, only 32% of Americans reported having one, according to a 2024 survey for Caring .com, an online review site for caregiving services. The number of Americans with an estate plan has fallen since 2023-the first decline since 2020, when the COVID-19 pandemic made estate planning feel more urgent.
هذه القصة مأخوذة من طبعة February 2025 من Kiplinger's Personal Finance.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة February 2025 من Kiplinger's Personal Finance.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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