Many Americans are under the impression that estate planning is something that happens later in life, once an individual has many assets. However, life is unpredictable and everybody should have an estate plan in place, even if it is a simple one.
In fact, this is the basis of a “simple will,” which is the name of an estate planning document. According to Findlaw, a simple will is a great choice for an individual who is younger than 50 with a smaller estate.
What can a simple will do?
Again, if you are a younger person with fewer assets, it is likely that a simple will can suffice for your estate planning needs. Simple wills are especially important for young couples with children. In the event that something happens to you, it is important that your minor children have a named guardian. A simple will can do this for you.
Simple wills can also pass down your wealth and assets to a spouse or any children. Even if your wealth is not very much, it is still important to have a clear delineation for your assets in the event of your death. Failure to do so can create a lot of familial strife.
What can a simple will not do?
Simple wills cannot help you manage your money after death. For instance, if you wanted to create a trust for your children or grandchildren with specific stipulations, a simple will is not broad enough to allow this. Additionally, if your estate is large enough for the government to subject it to estate taxes after your death, a simple will cannot handle this.