When some people think of estate planning, they don't think of it including financial planning. When some people think of financial planning, they don't think of it including estate planning. These two types of planning, however, go hand-in-hand. Michigan residents should know about how estate plans and financial plans work together to give your family the best financial future.
Estate planning, which includes at least making a will, helps to ensure that your family will be able to distribute your assets in the way you want them distributed. By avoiding lengthy probate proceedings, your family will be able to access your assets as soon as possible. They will also be able to save money since probate is expensive. For this reason, your financial plan must include your estate plan.
Another part of an estate plan that involves financial planning is long-term care insurance. By getting long-term care insurance, you are helping your family to know that if you end up needing to go into a nursing home, you will be able to get that care without them having to worry about the financial implications of the admission.
In case you do need specialized medical care toward the end of your life, you should also make sure that your estate plan contains a living will and powers of attorney designations so you have a say in what happens to you even if you are unable to convey your wishes right then. Having these forms in proper order is vital to ensure that your family members can legally respect your wishes.
Because your loved ones will be affected by your financial planning choices you make throughout your life, you should make sure that you have a solid financial plan. High investment fees, eggs-all-in-one-basket investment plans, and lack of an emergency fund can all have a negative impact on the estate your family members inherit when you pass away.
Source: Forbes.com, "8 Things Your Financial Plan Is Probably Missing" Erik Carter, Jul. 18, 2014