Over the next two decades, more than $84 trillion in assets is projected to transfer between generations. This incredible opportunity highlights the importance of preparing for one of life's most significant financial transactions: Estate Planning.
The truth is, two out of three people do not have an estate plan, but having one is a powerful way to protect your assets and provide peace of mind for your loved ones.
What is an Estate Plan?
Think of your estate plan as a set of instructions for your financial future. A collection of legal documents that outlines how your assets should be managed and distributed if you are ever unable to handle them yourself or after your death.
A solid plan typically includes:
- A Will to ensure your assets are distributed as you wish and to name a guardian for any minor children.
- Financial Power of Attorney to appoint someone to handle your finances if you are incapacitated.
- A Medical Directive to communicate your healthcare wishes.
- A Trust, which is a legal arrangement that can help manage and distribute your assets to your beneficiaries.
An estate plan will significantly help your loved ones know and follow though on your wishes.
Start with a Beneficiary
A beneficiary is a person or entity who is designated to inherit the assets upon the death of an account or property holder.
Beneficiary designations on your accounts are also a simple, free, and effective way to bypass the lengthy and costly probate process. Without a beneficiary, your funds can get tied up for months or even years, delaying access for your family during a challenging time.
Why You Can't Afford to Wait
Many people put off estate planning because it seems too complicated or they believe they do not have enough assets. In reality, it's a crucial step for everyone, regardless of their net worth. Without a plan, you leave important decisions to the courts, which can lead to conflict and unnecessary expenses for your family.
Mid Minnesota Federal Credit Union is stepping up to help you take control of your financial legacy. Through our partnership with Legal Karma, we now offer our members access to easy-to-use, comprehensive estate planning tools. You can create a will, healthcare directive, power of attorney, and more, all with trusted guidance. Find more information on our Mobile App or Online Banking under Financial Tools – Estate Planning. You can also visit our Wills and Trusts webpage.
Do not wait until it's too late. Protect your legacy and your loved ones' future. Contact us today to learn how MMFCU and Legal Karma can help you get started on your estate plan. Call or text (218) 829-0371 or visit your local branch.
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Mid Minnesota Federal Credit Union is federally insured by the NCUA, and we are an equal housing lender.