Why It’s not Just for Rich Families
30 Jan Estate Planning: Why It’s Not Just for Wealthy Families
Every family needs estate planning, no matter which tax bracket they fall into. Parents, in particular, need to take steps such as naming a guardian and writing a will. They also need to plan for the future. It’s not necessary to be wealthy to set up a child trust fund. A solid estate plan protects your assets during your lifetime, and will preserve more wealth for the future of your family. Let’s review the basics of estate planing for families.
Do You Need to Be Rich to Have an Estate Plan?
No! A simple estate plan includes the basic legal documents every adult needs, such as a will and power of attorney. You might want to create a trust for your children’s education if you have any. If you run a business, it is advisable to place your LLC into an irrevocable Trust to protect your assets from lawsuits. Estate planning can also include naming a beneficiary on your banking account, or filling out the transfer-on-death for your vehicle title.
Three important estate planning steps for families
1 : Writing a will
This step is something that every adult should do as soon as they reach the age of 18. Writing a will is a great way to name guardians and beneficiaries, no matter how old you are or how much wealth you have. If you haven’t accumulated much wealth yet, don’t worry–naming a beneficiary doesn’t mean they’ll inherit your debt.
If you have children, writing a will is how you appoint a legal guardian. If you fail to take this step, you could find your children in foster care or raised by a relative that you do not trust. You can also designate a caregiver to take care of your pet in the event that you are unable to do so.
2: Setting up a Trust
Another way to protect your kids is to create a trust. A lifetime assets protection trust, for example, will protect your children’s inheritance from lawsuits and creditors. A revocable trust is an excellent way to preserve family assets, such as your family home. There are also pet-trusts
! You can fund a pet trust to ensure that the caregiver of your pet has enough money to pay for food and veterinary treatment. 3: Appointing a Power of AttorneyAppointing a POA agent doesn’t mean giving up your personal freedom. There are several types of power-of-attorney documents, but they all have a set of terms. You can, for example, use a
parental POA
if you’re in the military and are deployed overseas to give another family or caregiver authority over children while you’re away.A Healthcare POA agent is able to receive private medical information on your behalf and make medical decisions. This person can be your spouse, as you trust them to make good decisions. This can be overwhelming to a loved one. You can spare your spouse the burden of decision-making by appointing an impartial third party and leaving clear directions.Estate Planning Services for Arizona Families
At Phelps LaClair, estate planning is all we do. We are a family-owned business and our mission is helping other families plan for the future. We’ve learned that estate planning is important for all families, regardless of their wealth. Working families, military families, and small business owners can benefit just as much from estate planning as millionaires.
If you’re curious about how estate planning can help you secure your family’s future,
contact us
to schedule a free consultation today. Photo by
Westwind Air Service
on Unsplash used with permission under the Creative Commons license for commercial use 1/28/25.