If something were to happen to you today, what would happen to your stuff? Who would be responsible for your kids? Who would pay your bills? Who would decide if you should receive life-sustaining support?
Most people have probably never heard of the term ‘estate planning documents’. It’s one of the biggest weaknesses in people’s financial lives that I see on a consistent basis and it makes sense because it’s not something that people want to think about.
Estate planning documents allow you to legally declare what you want to happen to you, your stuff, your money, and your children when you pass away or if you become incapable of making decisions for yourself. If you don’t have documents in place, then the state decides on your behalf.
They’re not only for rich people or old people.
Examples of estate planning documents include:
- Will
- Trust
- Durable power of attorney
- Healthcare power of attorney
- Living will (healthcare directive)
- Guardianship designations
Google these documents and learn more about them. You may find that these are decisions that you’d like to make rather than leaving it to the government.
