Life in your 30s and 40s often involves setting up your career, building a family, and buying a home. You might think estate planning is something to consider later in life. However, planning for the unexpected is crucial at any age. The peace of mind it offers is invaluable.
What happens if you don’t have an estate plan?
If you die without a will in Michigan, the state’s intestacy laws determine the distribution of your assets. This means the court decides who gets what. According to Michigan Compiled Laws, if you have a spouse and children, your spouse receives the first $150000 of your estate plus one-half of the balance. Your children inherit the rest.
- Without a will, you have no say in who cares for your minor children. The court decides on guardianship, which could cause family conflict.
- Your assets may not go to the people you want. A significant other you are not married to receives nothing.
- The legal process of administering your estate, probate, can cost a lot and take very long.
When you have a plan, you have the security that your executor honors your wishes. You protect your loved ones and streamline the process of settling your estate so they do not have to worry.
Can estate planning protect my children?
Yes, estate planning is essential if you have minor children. A will lets you name a guardian who will raise your children if you cannot. This provides stability and security for them. You can also set up a trust to manage assets for your children’s benefit. This is especially important if you have specific ideas about how you want your children’s inheritance used.
Michigan law allows you to designate a guardian for your children in your will. Without this designation, the court decides, which could result in someone you would not have chosen to raise your children. Planning protects your family. You gain confidence knowing you have taken steps to secure their future.
Is estate planning right for you?
Estate planning is not just all about writing a will. It includes planning for potential incapacity, making financial decisions, and ensuring everyone respects your medical wishes. Building up a plan tailored to your unique circumstances is a wise decision. Understanding the available options and legal implications helps protect yourself and your family.