110: Why Everyone Needs an Estate Plan

Answer us this: which person needs estate planning the most? 

A) Someone with two kids
B) Someone with a small business of their own
C) Someone who has property and possessions to pass on
D) All of the above

If you answered D, ding ding ding! You win.

Say the term “estate planning” and people assume it’s only meant for people with kids, or that it’s used to pass on wealth and possessions. But it’s much more than that, and we know that everyone benefits from an estate plan. We talk about why in our latest podcast episode.

WHAT YOU’LL LEARN

•  What estate planning usually includes
• Why most people avoid estate planning
• What happens when you don’t have an estate plan
• Basic estate planning documents you need
• A few things you may not have considered for your will
• The future of your business
• Think about life insurance
• Details to remember in your estate plan

Where does your stuff go?

Your estate is made up of all your possessions. Your home, your car, bank accounts, investments you’ve made, that yacht you use once in a while, the fabulous jewelry you inherited from your stylish grandmother, your prized collection of Air Jordans in your closet. All of that makes up your estate. So… what happens to it when you’re gone?

An estate plan dictates who gets your property when you pass on. Your kids, your close family members and friends, nonprofit organizations you passionately supported, you get the idea. If you don’t have an estate plan to dictate where your stuff goes, a court usually decides. Can you imagine? As Danielle put it, “You don’t want someone else — a stranger — deciding who gets what.”

Other parts of estate planning

Estate planning involves more than your possessions. Your will, which is a basic estate planning document, takes care of those decisions. There are other estate planning documents you need, too. 

Your power of attorney is one. A power of attorney is a document that gives another person the legal authority to make decisions on your behalf if you can’t. This person is called your power of attorney agent. A power of attorney agent might make decisions about your medical treatment, finances, assets, and more. 

Many people choose their spouse or partner as their power of attorney agent, but consider the worst case scenario: you and your partner both pass away or become incapacitated at the same time. You may want to consider someone else just in case. That brings up another component of estate pla