Do Feds need an estate plan? The short answer is a resounding, “Yes!” Don’t make the mistake of assuming only millionaires and billionaires need to protect their assets.
When you crunch the numbers, the value of your home, investment property, collectibles, jewelry, plus cars and boats can add up. And when you add in funds you’ve socked away in regular savings accounts and retirement accounts like the Thrift Savings Plan (TSP), the grand total of your assets may surprise you.
An Estate Plan Protects Your Loved Ones
Without a Last Will & Testament, you can’t be sure that your wishes will be honored when the time comes to divide your assets among your loved ones. Who gets what? When will they get it? Will there be arguments over any monetary inheritance?
Add to this, your loved ones may have to deal with the high cost of probate court and a process that can drag on if litigation is involved. Depending upon the laws in your state and the value of your property, probate court can cost a few thousand dollars.
“Without a formal estate plan, the state will make all of these decisions for you and the result could be far different than what you wanted.”
What Happens If You’re Incapacitated?
A Last Will & Testament isn’t the only document in an estate plan. When a medical crisis leaves you incapacitated and unable to make decisions for yourself, Advance Healthcare Directives help ensure your preferences are respected.
Official titles of these documents vary from state to state and it’s important to check to see what your state law requires:
- Living Will: a document that describes your preferences for health care treatment
- Durable Power of Attorney for Health Care: also known as Medical Power of Attorney, Health Care Power of Attorney, Designation of Health Care Surrogate, or Health Care Proxy, this document names the person you’ve chosen to make health care decisions for you
- Advance Directive: a document that combines a Living Will and Power of Attorney for Healthcare
It Simply Makes Sense
Many federal workers may not think they need an estate plan because their pension (annuity) and Thrift Savings Plan fall outside the purview of probate court. However, other things you need to think about in the event of your death include paying off debts, dividing real estate and other types of property, plus guardianship of minor or disabled children.
Without a formal estate plan, the state will make all of these decisions for you and the result could be far different than what you wanted. Contact an FRC® trained advisor who can put together an estate-planning team that understand your federal benefits.
