3 reasons why you need to create your Missouri estate plan today

Many people have the misconception that estate planning is something only people with a lot of wealth and assets can do, but this is not true. You can create an estate plan if you want to pass down your belongings after you pass away.

These plans outline all of your assets, including your properties, financial accounts and investments, as well as how you want to handle them after incapacity or death. There are three major ways estate planning can help you.

You can decide who inherits your property

Writing your will is a fundamental part of creating an estate plan, and if you pass away without one, the state will decide who inherits your property. This can be a problem if there are assets you want to give to specific people, such as your children or your spouse.

Under Missouri law, if you have a spouse and children and pass away without a will, your spouse may receive $20,000 worth of intestate estate along with half of your properties and assets by default. Your children share the other half. By writing an estate plan, you can decide who your assets will go to.

You can name guardians and protect your minor children

Another benefit of creating an estate plan is the ability to formally nominate guardians who will care for your minor children after you pass away. Without an estate plan, the state will decide who raises your children. This can potentially lead to family disputes and your children might enter the guardianship of someone you may not approve of.

By appointing them guardians, as well as conservators to manage their finances, you can ensure that your children receive care and support from people you trust.

You can plan for emergencies and potentially avoid probate

Unlike wills, you do not have to pass away for your estate plan to take effect. You can plan for incapacity, such as falling ill or becoming comatose, allowing you to entrust your assets to your family and friends.

You can accomplish this by appointing a durable power of attorney to handle your finances and a healthcare power of attorney to make medical decisions on your behalf. Similarly, you can use trusts to allow a third party to hold and manage your assets. Assets under trusts generally bypass probate.

Planning for the future

Creating an estate plan can be emotionally taxing. By writing out your will and determining how your estate will be handled after your passing, you may have to confront your own mortality. Similarly, there are also many factors to consider that might be stressful, such as complex family dynamics and difficult decisions regarding asset distribution.

However, estate planning can provide peace of mind. There is a lot of comfort in knowing your affairs are in order. The knowledge that your children and your belongings are in good hands can reduce any anxiety about the future you may have.