One of the biggest misconceptions about estate planning is that it is only for people who have a lot of money. The truth is that everyone can benefit from proper estate planning. While you may not need an extensive or complex plan, even a simple one can make things easier on your heirs when you die.
According to Forbes, if you have children or valuable assets, then having an estate plan can help your heirs avoid complicated probate after your death. A plan will allow you to ensure that your heirs honor your wishes in respect to what you want to happen with your assets and everything else you leave behind.
Perhaps an estate plan is most important if you have minor children because it will allow you to name a guardian. If you fail to have a legal document stating who gains custody of your children in the event of your death, then the state will step in. Your children could remain in state custody until the court figures out who should get custody.
You do not need to have an extensive amount of assets to need an estate plan. Even if you have modest assets, such as a bank account, a vehicle and a home, you still need a plan for who gets ownership after your death. If you fail to do so, your family may not know what to do or they could argue over what to do. The court may then have to step in and make decisions on your behalf, which may not match your desires.