Estate Planning: It’s Not Just for the Wealthy—Here’s Why You Need It

When people hear the term “estate planning,” many assume it’s only for the wealthy. However, the truth is, estate planning is crucial for anyone who wants to ensure their wishes are honored and their loved ones are protected—no matter the size of their estate. At Susan B. Geffen Law, we believe that estate planning is a key step for everyone, regardless of financial status. Let’s explore why estate planning is important for you, even if you don’t consider yourself “wealthy.”

Estate Planning Protects Your Loved Ones

You don’t need to have a mansion or millions in the bank to need an estate plan. Estate planning is about more than just passing down assets; it’s about making sure your family is cared for and avoiding unnecessary complications after you’re gone. Without a plan, your family may be left to navigate complicated probate processes, potentially causing emotional and financial strain.

According to a 2023 survey by Caring.com, only 34% of American adults have an estate plan. Yet, estate planning is essential for anyone who wants to protect their loved ones, especially if you have minor children, own a home, or have any savings or investments.

Key Benefits of Estate Planning (Even If You’re Not Wealthy)

Many assume estate planning is only for dividing large fortunes or complex portfolios, but the benefits extend far beyond that. Here’s why estate planning matters, regardless of your net worth:

1. Control Over Your Assets

Whether you have a large estate or modest savings, estate planning allows you to control how your assets are distributed. Without a will or trust, the state will decide how to divide your assets according to California’s intestacy laws, which may not align with your wishes. Through estate planning, you can ensure that your assets—whether it’s a home, a car, or personal belongings—go to the people you choose.

2. Designate Guardians for Your Children

One of the most important aspects of estate planning is appointing a guardian for your minor children. Without a formal designation, the court will decide who takes care of your children if something happens to you. By creating an estate plan, you ensure that your children are raised by someone you trust and in the environment you choose.

3. Avoid Probate

The probate process can be lengthy, costly, and stressful for your loved ones. Estate planning tools like living trusts can help your estate avoid probate entirely, speeding up the process and reducing legal fees. The American Bar Association estimates that probate can take up to two years to complete, depending on the complexity of the estate. Even if your estate is small, avoiding probate can save time and reduce stress for your family.

4. Plan for Incapacity

Estate planning isn’t just about what happens after you die; it’s also about protecting yourself while you’re still alive. By including a durable power of attorney and healthcare directive in your estate plan, you can ensure that your financial and medical decisions are made by someone you trust in the event of incapacitation.

Estate Planning Can Help You Save on Taxes

Even if your estate is modest, you may be able to reduce tax liabilities for your loved ones through estate planning. Certain strategies, like gifting assets before you pass away or setting up trusts, can help minimize the tax burden on your heirs. By working with an experienced estate planning attorney like Susan B. Geffen, you can explore options to protect your estate from unnecessary taxes and ensure your legacy is preserved.

Who Needs an Estate Plan?

It’s a common misconception that estate plans are only for the wealthy, but here’s who should consider creating one:

• Homeowners: Your home is likely one of your biggest assets, and an estate plan ensures it’s passed down according to your wishes.
• Parents of Minor Children: Estate planning allows you to designate guardians and ensure your children are financially provided for.
• Business Owners: If you own a small business, estate planning ensures that your business can continue or be passed on smoothly.
• Anyone with Savings or Investments: Even a modest amount of savings or a retirement account can benefit from the structure and protection an estate plan provides.

Estate Planning with Susan B. Geffen

At Susan B. Geffen Law, we specialize in creating personalized estate plans that reflect your individual needs and goals. Whether you’re looking to draft a simple will or create a more comprehensive estate plan, our experienced team is here to help. Attorney Susan B. Geffen brings extensive knowledge in estate planning, elder law, and trust administration, ensuring that every client receives expert guidance.