Every person has an estate if they possess anything, whether it is a checking or savings account, a vehicle, clothing, personal possessions, life insurance, a home, or any tangible item, regardless of how big or how small these assets are. Everyone should have a say in what happens to their possessions upon their demise. That means estate planning is essential. The purpose of estate planning is to outline where these items go when people die as they are unable to take those items with them. It’s a fact of life that no one lives forever, so an estate plan should be created immediately by anyone of legal age.

In addition to explaining where the person’s possessions are to go, the estate plan may be used to provide other information about the decedent’s wishes during their lifetime. The individual may include instructions for what type of care they wish to receive in the event they become disabled and unable to speak for themselves as well as information on who they would like to have named guardian for any minor children. That is known as the Living Will, which also usually designated your health care representative.

There may be instructions on how to provide care for loved ones with special needs who is currently receiving benefits from the government, as these benefits could be terminated if the estate plan is not carefully laid out. Business owners need to have a provision in the plan that covers what will happen to their share of the business if they become disabled or die, and life insurance or long-term care insurance may be included in the plan.

Individuals often assume an estate plan is for those who are retired, yet that is not the case. Every person should have a plan of this type, as one can never know what life holds. Income should not be a factor when determining if an estate plan is needed, as everyone has something of value in their life, even if it is nothing more than the clothes on their back. In fact, experts often state that those who have less need an estate plan more than the wealthy, as they have less they can afford to lose when passing on to their heirs. For this reason, estate planning is essential at every age.

In the event a person becomes disabled or dies and doesn’t have an estate plan in place, the state determines who will be made guardian or conservator over their healthcare and financial decision, or administrator over their assets. The term varies by state, but the person given this power has the same responsibilities. For healthcare and finanical management, when a person is disabled, this guardian or conservator use their own judgement as to what is appropriate. The law decides what happens when a person dies with no intentional estate plan, and the laws vary by state here also. For example, if you pass away in Connecticut without a Will, leaving spouses and children, the spouse is likely not going to inherit everything. It is important to know what will be decided for you, and make a plan if you are not happy with that. When minor children are left behind with no parent, the state also determines guardianship for them. Having an estate plan ensures the state, the court, and family members know exactly what the deceased wished to see happen, so estate planning should never be delayed.