Estate Planning Basics
Estate planning is one of those things that none of us want to talk about, much less take care of, but that must be handled at some point if you don't want to leave anyone out in the cold. But how much planning actually needs to go into estate planning? The answer to this question lies in your own personal situation.
Young and Single
If you're young and single, it's doubtful that you even need to bother with estate planning. Unless you have a ton of money or a job that requires that you take large risks every day, it's very unlikely that you're going to die anytime soon. With that disclaimer, let's move on to what happens if you do decide you need to allocate some of your stuff. A lawyer can easily and quickly draw up a will for you that will allow you to designate who will receive what if you die. At your age, it probably won't be much, and whatever is not specifically named will probably go to your parents.
Kids in the Picture
If you have children and the means to provide for them, it's very important that you draw up a will and a plan for them should you pass away. This means not only designating who would assume responsibility for your children if neither of their parents are present, but also the financial means with which those people are meant to take care of them. Be sure to discuss this choice with your designated guardians and make sure they agree to it so the process is guaranteed to go smoothly.
Have Lots of Money
If you have a sizeable amount of cash, it means that if you die a lot of people will probably try to claim some of it. An estate plan makes this a little harder. Make sure you designate clearly in writing, in a lawyer's presence, what you want to go where. The lawyer will help you think of resources you didn't remember you had, and will leave no stone unturned. The safest way to ensure that everyone gets what you want them to have is to give it to them while you're still alive. That way, they can't be taxed on it and neither can you. And don't you want to be around to see the look on their face anyway?