Las Vegas residents who are thinking about their assets, their loved ones and the necessary steps to be fully protected should understand the value of an estate plan. An estate plan can be relatively simple, or it can include wills, trusts, powers of attorney and more. It’s a good idea for everyone to have some type of estate plan, and to keep it up to date. While some people may want to get into more complex planning, it’s a good idea for everyone to understand the fundamentals.
Current challenges have led to an increase in estate planning
Since early 2020, people have been confronted with a radically changed environment with worries about the future. That has led to more people creating estate plans. Statistically, younger people have shown greater interest in estate planning. Those 18 to 34 are 16% more likely to have a will than those 35 to 54. For people 25 to 40, around one-third have an estate plan. Overall, less than half the adults across the nation have a will. This is a problem that frequently leaves families left behind wondering how to handle a person’s estate.
In a will, the person who creates it – the testator – will name an executor to ensure the terms are followed. There are financial requirements such as paying off debts. The properties will need to be distributed to the heirs. It can be complicated and sometimes overwhelming, especially for a person who is still dealing with the emotional aftermath of the death of a loved one. The executor should be up to the task. In an estate plan, financial accounts and property will be passed along. Many times, a testator will have retirement accounts and insurance policies that they expect to also be passed to heirs. However, if the beneficiaries listed on the account differ from what the will says, it will go to the person or persons named on the account. If, for example, the person got divorced and failed to change the beneficiary, the retirement account will generally go to the former spouse, potentially causing discord.
Tailoring an estate plan to individual needs may require experienced guidance
There is often a reluctance to acknowledge the inevitable and write a will or create a trust. Still, failing to take these steps can be a major mistake. It leaves a person’s property subject to intestate laws. Simply creating the estate plan may not be sufficient as life changes like marriage, divorce, having a child or grandchild and more can come up. Updates are also essential. For advice with a suitable estate plan, consulting with experienced professionals is a smart choice.