There comes a point in life where estate planning is practically a necessity, especially if you have children that are to be your direct heirs. You may be thinking that all you need to concern yourself is with having a will to make sure everything goes to your children, but there’s more to estate planning than that. Understanding estate planning helps you make the decisions that are best for you and your family as certain life events unfold.
Before the will should come life insurance. If you are married with children, you want to make sure that they benefit in the event of your untimely death. Figure on getting enough coverage that is equivalent to five times your yearly income and net worth (total sum of assets). Next is your will. This is a relatively simple document in which you swear that you are of sound mind and body when you write it out, and that these are your absolute wishes. Assigning someone to be your power of attorney is also a good idea. Having someone you trust as power of attorney gives them the ability to take care of your finances and other related issues if you are incapacitated. Finally, do you need a trust? If you have a somewhat complicated estate, it may be worth looking into, but talk to an expert in the field first.
Are you in the greater Phoenix area and in need of financial planning? Contact Phocus Companies today to set up an appointment with a qualified expert.
