Many people put off creating an estate plan because it causes them to face the eventuality of their own death. While no one enjoys thinking about their demise, it is necessary to do so to be sure your loved ones receive the property you intended for them, in the manner and at the time you intended.

The foundations of any good estate plan are a durable power of attorney and a will. The durable power of attorney allows you to designate someone to manage your financial affairs while you are still living in the event you cannot do so yourself. A will spells out the specifics about the management and distribution of your assets after you die.

You are never too young to start developing your estate plan. Even if you don’t think you have enough property to be concerned about distribution, you may have other “assets” like your children whose future you need to protect. The following list provides some important reasons to consider creating an estate plan:

• Choosing whom you want to manage your affairs if you are no longer able to do so - Without an estate plan the courts will designate the person who manages your finances.
• Selecting a guardian for your minor children - An estate plan gives you the capability of selecting your children’s guardian. Without it, the court will make that decision.
• Deciding who will receive your property - If you die intestate, meaning without a will, your assets pass to your heirs according to your state’s laws of intestacy.
• Distributing assets among children from different marriages - If you have children from different marriages, you will need an estate plan to ensure an equitable distribution of your property among all of your heirs.
• Providing care for children with special needs - An estate plan allows you to establish a Supplemental Needs Trust, which enables a special needs child to remain eligible for Social Security and Medicaid benefits while using the trust assets to pay for non-covered expenses.
• Keeping assets in the family - If your married son/daughter dies prematurely, their spouse could inherit your money if there is no estate plan. If your child divorces their spouse, half of your assets could go to the spouse. If you have an estate plan, you can establish a trust that ensures that your assets will stay in your family and pass to your grandchildren.
• Providing income replacement for your loved ones - Part of your estate plan should be purchasing enough life insurance to provide a replacement of the income you provided your family while you were alive. This will help your family maintain their current lifestyle.
• Selecting the beneficiaries on your retirement accounts - The beneficiary on your IRA or other retirement accounts can be changed after your death by the executor of your estate if you don’t have an estate plan. It could also result in serious tax consequences for your heirs.
• Planning for a successor in your business - Without a plan, you probably don't have a legitimate successor, which could cause your family to lose control of the business.
• Avoiding probate - Without a plan, your estate may be subject to probate delays and excess fees.

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