Put Your Wishes on Paper Series - Part 1

/ Worley Erhart-Graves Financial Advisors/

One unfortunate thing many of us have been forced to learn as a result of the coronavirus pandemic is the importance of having an estate plan in place. As younger members of the population, most of us haven’t been forced to think about the possibility of an early death. COVID has changed that mentality. However, according to a survey by Caring.com, an astounding 78% of Millennials don’t have a will in place. If you are over age 18, you need four basic estate planning documents; a will, a power of attorney, a healthcare proxy, and a living will. It doesn’t matter if you have kids or not, if you’re married or not, if you’re wealthy or if you have a mound of student loan debt. Everyone needs an estate plan. It can be scary to face your own morbidity, especially at a young age, but having an estate plan prepared is a necessity to protect yourself and your loved ones. Over the coming weeks, I will outline the four main documents every adult needs.

Let’s start with the first document listed above. Most people have heard of a will but may not understand the importance of having one. A Last Will and Testament (otherwise known as a will) is the legal document that provides instructions on how you would like to distribute any property or assets you own after your death. As well, it allows you to designate an executor (the person in charge of distributing your estate). If you have minor children or even cherished pets, this document will also allow you to name a legal guardian for them. If you don’t have a Last Will and Testament, a judge (based on your state’s laws) will decide how your assets are distributed and what happens to your children and/or pets. Keep in mind, your will only applies to assets that do not have a beneficiary designation. If you designate a beneficiary on your 401k or a life insurance policy, those instructions trump the instructions written in your will. Therefore, always review beneficiary designations when creating or refreshing your will.

Stay tuned for more information over the next few weeks about the other three essential estate planning documents mentioned above.

- Margaret Gooley, CFP®, CDFA®, Worley Erhart-Graves Financial Advisors