Estate planning is often misunderstood as something only the ultra-wealthy need. The truth is, it's a valuable legal tool for anyone who owns assets, whether it's a home, a car, or a savings account. Its primary purpose is to protect your assets and ensure they are distributed or managed according to your wishes after your passing.

Before deciding how, when, and to whom your assets will be distributed, legal professionals often encourage individuals to inventory what you own. This includes listing all significant assets, including real estate, vehicles, jewelry, and financial holdings such as investment accounts, savings, and life insurance policies. The more specific your estate plan, the better your chances of avoiding probate—a lengthy legal process that can delay asset distribution.

Once you've outlined your assets, the next step often includes documenting your final wishes. These wishes are typically recorded in a will and in medical and financial directives, which specify instructions in case you cannot make decisions due to illness or injury.

A crucial decision in this process is choosing an executor—the person responsible for carrying out your estate plan. Your executor should be someone you trust, who understands your wishes and can handle the legal and financial responsibilities involved. Keep in mind that an executor is different from a beneficiary. Beneficiaries are the individuals, organizations, or trusts that receive assets from your estate. While minors can be designated beneficiaries, they cannot legally manage their inheritance without an appointed guardian.

Creating a comprehensive estate plan takes time, but it's a vital step in securing your legacy and protecting your loved ones. Start planning today!