When Iowa residents start to think about getting an estate plan together, they oftentimes do not know where to start. Many people feel overwhelmed with the vast array of options that could constitute a comprehensive estate plan. However, when people approach estate planning in terms of solving problems before they arise, this can make the whole process much easier. It is important to recognize specific issues to plan for when it comes to estate planning.
A recent article pointed out a few specific instances that may occur in a person’s life and which an estate plan can address. For starters, there is the issue of dying “too soon” or, rather, dying when there are still people who depend on you financially, such as a spouse or minor children. An estate plan can direct the funds in certain accounts, such as retirement accounts, investment accounts and especially life insurance policy payouts, in such a way that those who would be financially vulnerable would be provided for.
The recent article also pointed out that estate planning can help a person determine the amount of their resources and plan accordingly for the long-term. In this way, just the process of estate planning can help people avoid “out-living” their financial resources.
Yet another type of scenario that can arise is emergencies, and an estate plan can account for these scenarios, to a certain extent. In the estate planning process, determine the insurance needs for now and in the future, and a comprehensive estate plan will typically also include power of attorney documents to appoint a person to make decisions on one’s behalf, financially and medically, if one is unable to do so.