Estate planning is worthwhile for anyone who has reached the age of majority. Creating a will or trust can give you greater control over what happens to your Colorado home or other assets in the event that you die or become incapacitated. However, not everyone has an estate plan, and there are a few common reasons people cite as to why they haven’t created one yet.
Estate planning does come with a cost
One of the primary reasons people put off creating an estate plan is that it costs too much to do so. However, the truth is that the money invested into a will, trust or other estate planning documents can keep assets that are worth significantly more in your family for decades to come. Furthermore, there are methods that you can use to keep estate planning costs to $1,000 or less.
Your kids need more than a verbal agreement
Talking to your kids or other beneficiaries about your estate plan goals is certainly something worth doing. However, a conversation does not replace the authority of a will or trust. If you were to die without an estate plan in place, your assets will be allocated per state intestacy laws. This means that while your kids may get a portion of your estate, they may not get everything that you intended to pass to them.
Estate planning is about more than assets
You may believe that there is no need to have an estate plan because you don’t have anything of value to pass on. However, such a plan can be useful for more than just passing assets to future generations. If you have young children, creating a will allows you to name a guardian in the event that you pass or become incapacitated.
Ideally, you will create an estate plan as soon as possible after reaching adulthood. Furthermore, you’re encouraged to review your plan at least once a year to ensure that it’s structured properly and that it still meets your needs.