NEXT AVENUE - SPECIAL SECTION
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Estate Planning Basics You Need to Know By Richard Eisenberg
I like the way my "Friends Talk Money" podcast co-host Pam Krueger put it when describing
You can hear “Friends Talk Money” wherever you get your podcasts. Wills and Trusts First things first: the importance of having a will. This document will let your loved ones know where you'd like many of your assets to go upon your death. It's essential to have a will whether you're married or single or whether you're a parent, grandparent or childless. Your life insurance policies, Individual Retirement Accounts and 401(k) accounts will automatically go to whomever you name as beneficiaries. (Side note: be sure you've named your beneficiaries and that your choices are up to date.) Savage strongly urges hiring an estate lawyer to prepare a will and possibly a revocable living trust — more on the latter shortly. "Estate planning is a not a DIY project," she said. While I agree that having an estate lawyer can be hugely helpful (I use such a pro), I also know that not everyone can afford to hire one, especially these days. Lawyers often charge $1,000 or more to draft a will. That's why I think it's better to have a good, inexpensive online will — figure on paying $20 to $200 — that meets your state's rules, rather than not to have a will at all because a lawyer costs too much.
estate planning: "I hate the words estate planning. It's just planning ."
She's right.
Some people get scared off by the term “estate planning” because they think it sounds like something only the wealthy need to do. Truth is, one of the greatest gifts you can make for your loved ones is leaving instructions for both your wishes after you die and for if you can't make health or financial decisions while you're alive. As Krueger said: "It's not always all about money. It's about planning to make things easier for the transfer of your assets and to reflect what's important to you should anything happen."
Below are a few tips from "Friends Talk Money" co-hosts Krueger (co-host of "MoneyTrack" on public television), Terry Savage (nationally syndicated personal finance columnist) and me (editor of Next Avenue's Money & Policy channel).
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