One reason that people give for not making an estate plan is that they do not think they are wealthy enough. They may believe that estate plans are only for those with over $1 million in assets, for example. Without a significant windfall, they think it just does not matter for them.
However, estate planning is important at any asset level, and there is no upper threshold. Below are a few ways that it could help, even if you do not have significant wealth.
Sentimental value
To begin with, many of the assets you own may have sentimental value to your children or other descendants. It is still important to make a plan for how these should be divided to avoid estate disputes, even if the assets themselves do not have much financial value.
Making medical decisions
Another thing to consider is that you can use your estate plan to make medical decisions in advance. There are a few ways to do this, such as writing a list of instructions for your medical team or simply using a medical power of attorney to authorize someone else to make these decisions in the future.
Letting your preferences be known
Finally, just remember that your estate plan is a way for you to tell your family about all of your preferences regarding assets, healthcare, long-term care needs and much more. Simply giving them this list of instructions can provide them with significant peace of mind and reduce the stress they feel at this crucial time.
Drafting your estate plan
If you do not have an estate plan yet, it is important to get one on file so that your family has the documentation they need, when they need it. Take the time to carefully look into all of your legal options and the steps you need to take.