Yes, you do need an estate plan. A big myth is that many people think estate planning is only for someone who has a lot of money. Below are five reasons you need one.

1. Avoid probate. Without a plan, your assets may be subject to delays and costly attorney fees. So even if you leave behind a rather small legacy, why drain that legacy through probate? Pass it on to your loved ones, and pass it on quickly! With a proper estate plan, you can avoid probate entirely, along with the delays and expenses that accompany it.
2. Dying without a will. You lose control as to who takes what. You leave it all up for interpretation. With a plan, you decide who gets your assets, when they get them, and how they get them.
3. Keeping assets in the family. Without a plan, your child’s inheritance may wind up with your in-law if your child passes away prematurely after receiving their inheritance. If your child faces divorce after receiving the inheritance, half of your assets could go to the soon-to-be-x-in-law. Without a plan, you won’t be assured that your boat went to your son or that your daughter was given the money she needed to attend a university. By creating an estate plan, you can structure the distribution of your assets however you want and ensure that your assets stay in your family.
4. Blended families. This is very common today. Without a plan, children from different marriages may not be treated as you would wish. With a plan, you determine how much of your assets go to your current spouse when you die. If your surviving spouse gets it all, your plan can prevent the surviving spouse from leaving your natural born children behind and disinheriting them.
5. Loss of capacity. Without a plan a court will select a person to manage your financial affairs and healthcare should you lose capacity. With a plan, you pick that person through an enhanced durable power of attorney and healthcare healthcare surrogate. An enhanced durable power of attorney is one of the most single most important documents everyone should have, and the online “one size fits all” legal documents will not suffice. You want to confirm that if or when you lose capacity you have a trusted person who will step in and take care of specific financial, legal, government, and health affairs. If your power of attorney is not specified and tailored to YOUR needs, it won’t suffice later.