People in Texas typically avoid the topic of estate planning simply because it is associated with death — something they may prefer not to discuss. However, estate planning plays a major role in getting one’s family all on one page when dealing with key issues. Estate plans are essential for a few core reasons.
First, an important part of an estate plan is the designation of a financial and medical power of attorney. Power of attorney documents enable people to determine which individuals will make financial and medical decisions for them in the event that they cannot do this themselves as a result of dementia, coma or serious injury, for example. As part of an estate plan, a person can also specify which treatment he or she would like to have or would not want to have.
Estate planning is also vital in that it allows people to distribute their assets with little hassle. This is important even for people who do not have large estates. Individuals with only a few assets would benefit from putting together a will and then keeping beneficiary information updated on life insurance policies or retirement accounts. If there is no estate plan in place when a person passes away, the state in which he or she lived will determine who will get his or her money.
Proper estate planning allows people to determine who will end up with their most valuable assets when they die. It also helps to prevent fighting between family members, who may argue about who will get certain assets. With appropriate legal guidance, people can produce estate plans that further ensure that the money they leave to their surviving family members will be managed well in Texas.
Source: gobankingrates.com, “Estate Planning 101: Why Everyone Needs an Estate Plan“, Cameron Huddleston, July 25, 2015