When it comes to creating an estate plan, you want to be as comprehensive as possible. Many people may not consider life insurance as part of their estate plan, but it is an important component in protecting your loved ones. In fact, if you have young children or a loved one with a disability, obtaining life insurance can be an effective way to ensure that they are provided for after you die. It allows your loved ones to obtain immediate cash at a critical time.
Determining the amount of life insurance you need may not be simple. You must consider both your long-term and short-term goals, as well as the needs of your family members who have been dependent on your income.
When you have minor children, you must consider how long it will take before they will be financially independent. If you have older children that are employed, they may require less monetary support than the younger children.
As general guidance, you must calculate the long-term needs of your dependents. This includes figuring how much of your income is provided to them every year, subtract the value of the assets you will pass down to them as well as any monetary support they will receive from other family members. This gives you an estimate on what each dependent will need.
In considering the short-term needs of your dependents, consider whether they will require quick access to money or assets. If most of your property is not easy to access or able to be immediately liquidated, then proceeds from life insurance can provide money for your loved ones to live on while they convert assets to cash.
It is our goal to provide you with the most comprehensive estate plan and asset protection plan as possible. Let us review your individual circumstances and help you create the best strategy for you and your family.
The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.