Some people hear the phrase “estate planning” and think that only applies to the very wealthy, people who have to worry about trust funds and fly their own jets. However, estate planning is for everyone. If you have a will, you need to have at least a minimal estate plan.
What is an estate plan? In simple terms, it assures that your wishes for what happens to your property and assets after you die are observed, to the largest extent possible. In addition, an estate plan will likely show you the tax implications of various choices you make, so that, armed with all the information, you can make the smartest choices possible.
Why is estate planning connected with insurance? Simply put, good estate planning requires a team of advisors – ideally, an attorney, an investment advisor, a CPA, and an insurance broker. There are many situations in which having a life insurance policy pay a benefit will ensure the success of a particular estate plan’s goals.