When people think about the type of person who needs an estate plan, many likely picture a wealthy investor or a family with significant assets. However, it is imperative for low-income families to recognize the importance of estate planning as well. In fact, estate plans help those with modest assets in many different ways, not only in terms of their finances but also with regard to emotional matters, the well-being of children and the health of family relationships following the loss of a loved one.
Low-income individuals are able to set up an estate plan to address key questions related to matters that will surface at the end of life and in the event that one becomes incapacitated due to a serious physical or mental hardship. Making decisions related to appointing a guardian for one’s children is crucial and these estate plans help prevent conflict in the family that often comes up when someone dies and does not have an estate plan in place. For example, family members often fight over how to divide certain assets as well as responsibilities regarding their loved one’s estate.
On top of these benefits, estate plans help people ensure that their assets are distributed properly after they pass away. Even those who do not have very much in terms of their finances often have items with sentimental value and various assets that create a rift in the family when it is unclear how to divide them. These are just some of the reasons why it is so important for low-income families to have an estate plan in place. On our website, we cover many other topics that relate to setting up an estate plan and making modifications to an existing plan.