Most people think estate planning is just taking care of things when you die.
Most people would be wrong.
On this episode of Estate Planning TV I’m going to talk about the three primary jobs of estate planning.
1. It gives you protection while you are alive.
Believe it or not, estate planning covers you when you are alive.
There are 2 important documents that do this.
The first is called Power of Attorney.
Power of Attorney appoints someone to take care of financial life if you’re not able to because of sickness or injury.
The second is called Medical Power of Attorney.
Your Medical Power of Attorney appoints someone who knows you, your wants and wishes regarding medical care to provide guidance to medical staff regarding about your health in cases that you cannot make decisions for yourself.
It also covers long term care in the event you would need an assisted living facility.
2. Protect your family when your dead.
This is the part of estate planning that we all think about and would include a will and trust in many cases.
These documents perform many jobs, including:
- Making sure your money stays in your family (protects from divorce, bankruptcy, etc.;
- Making sure your money is not wasted frivolously;
- Create an instant retirement fund for your kids; and
- Promote your family values.
3. To create generational wealth without creating trust fund babies
The cool thing about estate planning is, if done right, you can create endless opportunity for your family without creating trust fund babies.
Your kids will be able to pursue a passion without regard to affordability (think music, sports, business, writing, etc.).
But, they won’t be given anything to the point they are coddled or that laziness is rewarded.
At the end of the day, there are immense benefits to creating an estate plan.